(CORRECTED)MNI BRIEF: ECB "Can Be Inventive" Over TLTRO

(Removes reference to full allotment)

The ECB will continue to monitor how targeted lending operations contribute to the monetary policy stance, particularly as the near EUR480 billion maturity of TLTRO 3 approaches in June, President Christine Lagarde said on Thursday, although she said action in recent months had prevented a cliff-edge effect

"Banks have prepared well and there is a lot of liquidity out there," Lagarde said. "We have prevented a cliff-edge."

However, Lagarde said the ECB has the capacity to respond if necessary.

"It is the job of a central bank to provide liquidity. We have demonstrated in the past that we can be inventive," she said. (See MNI SOURCES: ECB Set For TLTRO Discussions Ahead June Maturity)