ECB liquidity ‘holds together Europe’s weakest’
The European Central Bank’s extension of its special liquidity arrangements will distort competition among banks and postpone balance sheet adjustments, warned Fitch this week as it provided country-level updates on use of the facilities since the start of the financial crisis.
Fitch released the report after the ECB reinstated some of its special liquidity measures including the Long Term Refinancing Operations, as part of the bail-out package intended to calm southern European sovereign debt markets.
"There is some evidence to indicate that some banks are now relying on ECB funds
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.