Breakingviews - ECB’s inflation battle has a 550 bln euro problem

  • 📰 Reuters
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 97%

United States News News

United States Latest News,United States Headlines

From Breakingviews - ECB’s inflation battle has a 550 bln euro problem

June 28 is a pivotal date on the European banking calendar. On that day, lenders must repay 549 billion euros they borrowed from the ECB’s targeted longer-term refinancing operations three years ago, during the pandemic.

Yet allowing the TLTROs to simply mature would force banks to fund elsewhere, driving up funding costs. And they are already facing a squeeze, as investors fret more over the impact of higher rates and real estate losses. The extra return, or spread, that investors require to hold bank debt over government securities has risen by some 35 basis points since early March, according to an ICE Bank of America index.that euro zone banks are well capitalised and have plentiful liquidity.

Such pricing would ensure that only lenders that really need the funds apply. And it would limit the risk that a splurge of liquidity drives up inflation. Doing nothing may be appealing for the ECB because, as executive board member Isabel Schnabel

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Breakingviews guerreraf72

Breakingviews guerreraf72 Not a convicted criminal?

that's about 1/2 of what biden's given away since it's in office.

Sanctions against Russia backfired? 🤣🤣🤣

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What If Kia Made A Pickup Version Of The Electric EV9? | CarscoopsWhat If Kia Made A Pickup Version Of The Electric EV9? | Carscoops carscoops
Source: Carscoop - 🏆 306. / 63 Read more »

What Would You Pay For This Specter Werkes/Sports 2008 Corvette GTR? | CarscoopsWhat Would You Pay For This Specter Werkes/Sports 2008 Corvette GTR? | Carscoops carscoops
Source: Carscoop - 🏆 306. / 63 Read more »

Euro rises as euro zone countries report inflation dataThe euro was set for its best week since mid January on Friday ahead of inflation data that will shape the ECB's interest rate plans, while investor expectations U.S. rates are near peaking meant the dollar headed for a second consecutive quarterly loss.
Source: Reuters - 🏆 2. / 97 Read more »

King Charles II Makes World Debut as Monarch With State Visit to GermanyBritain’s new king will make his debut on the world stage Wednesday, three days later and 550 miles (885 kilometers) northeast of where he had intended.
Source: nbcbayarea - 🏆 596. / 51 Read more »

Breakingviews - Boomerang UBS boss ticks several important boxesUBS could not depend on a relatively inexperienced chief executive as it embarks on the biggest banking merger of the decade. That’s the best explanation for why Chair Colm Kelleher on Wednesday said the Swiss bank was replacing CEO Ralph Hamers with erstwhile boss Sergio Ermotti. Though the move violates several corporate-governance red lines, it improves the group’s chances of successfully absorbing stricken rival Credit Suisse . Breakingviews LiamWardProud The liquidation and forced merger begins showing publicly visible signs of stress. Any further stress on a major European bank will probably make this fatal.
Source: Breakingviews - 🏆 470. / 51 Read more »

Breakingviews - Adidas adds risk by tripping over its sneakersAdidas is having a hard time keeping its feet out of its mouth. On Wednesday, the $28 billion sneaker maker withdrew a trademark objection to Black Lives Matter over its use of three stripes in its logo 48 hours after filing it. The organisation, born out of protest against violence on the Black community in the U.S., is using a logo that closely resembles Adidas’s own famed trademark.
Source: Breakingviews - 🏆 470. / 51 Read more »