Banks buoyed as ECB members signal flexibility on TLTROs
European banks have been given a boost in equity and debt markets this week, after Peter Praet, a member of the European Central Bank’s executive board, suggested that the terms of a new series of targeted longer term refinancing operations (TLTRO III) could be made more favourable for banks, if needed, to help them lend to the economy.
Importantly, Praet recognised that European lenders face having to issue vast sums of debt to replace maturing bonds in the next two years, as well as money borrowed from through the ECB’s previous TLTRO programmes.
“This could give rise to ‘congestion effects’ as banks try to issue large ...Please take a trial or subscribe to access this content.
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