(Bloomberg) -- The European Central Bank is close to agreeing on a new monetary framework that some officials hope will open the door to an ultimate revival of the interbank market, according to people familiar with the debate.

The setup — discussed by the Governing Council at a meeting this week — will be tailor-made for the 20-nation euro zone rather than modeled on any other jurisdiction, said the people, who asked not to be identified revealing private information. 

It will take the ECB at least two years to transition into the new system as excess liquidity evaporates from financial markets, they said. 

Policymakers are still on track to announce results in the spring, the people added. An ECB spokesperson declined to comment.

Ambitions of some officials to encourage a broader comeback of interbank lending and skepticism among others that such a scenario is easily achieved highlights the challenges in wringing the financial system off excessive central-bank support. It was the complete seizing up of interbank lending in 2008 that led to an existential market turmoil and an overhaul of how monetary authorities keep banks afloat.

Officials are determined to find a framework that serves the region’s policy needs, rather than providing a rigid corset in which tools can be used, said the people, who stressed that no decisions have been taken yet and convictions can change. 

The design under consideration will allow the ECB to operate with a smaller balance sheet and still deliver stable funding conditions for banks. It is envisaged to rely on bond holdings and bank loans to provide sufficient liquidity.

Discussions are ongoing about how to balance the two instruments, with those details key in determining the role interbank lending may play in distributing liquidity across the 20-nation bloc.

A structural bond portfolio is seen providing a portion of the necessary funding, though not enough to fulfill banks’ needs entirely. There’s merit in considering shorter maturities for that portfolio, the people said. Its size hasn’t been determined.

In addition, banks will be able to participate in refinancing operations, with durations anticipated to be similar to offerings over the past years. Officials haven’t voiced any major objections against maintaining the current policy of satisfying all bids at a fixed rate.

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