Euro zone banks repay only a fraction of ultra-cheap ECB cash

14 Dec, 2018

Banks borrowed over 700 billion euros in four-year targeted longer-term refinancing operations in 2016 and 2017, and most now hold onto the loans as ECB cash remains among the cheapest sources of funding.

While banks have an option to repay these funds at certain intervals, repayments have been small and banks are instead lobbying for the ECB to roll over the loans before they near maturity.

Copyright Reuters, 2018

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