ECB will estimate health of bank credit

ECB will estimate health of bank credit

Next month, the European Central Bank is on the verge of reassessing the outlook for bank lending next month because there’s a likelihood that EU financial institutions could tighten credit supply and drive the current economic deceleration. That’s what Peter Praet, the bank’s chief economist uncovered.

His remarks will most probably cement market hopes for another round of multi-year ECB loans to financial institutions because existing ones worth approximately 750 billion euros start maturing in 2020, making a cliff-edge for lenders in Italy as well as other southern European nations.

The euro zone's economy has kept slowing, raising questions over ECB plans to have interest rates lifted after next summer.

Praet told that they don’t need to closely watch the transmission of monetary policy via the banking system. He added that in March they’ll come up with an assessment of the current as well as expected state of bank transmission.

In addition to this, Praet told that the ECB's Targeted Long-Term Refinancing Operations had appeared to be an extremely useful thing and they remained part of the major bank’s "toolbox".

By the way, Praet turned out to be the second ECB board member to pay much attention to the prospect of another TLTRO right after the previous week Benoit Coeure told that another round was probable.

In addition to this, the chief economist told that he actually expected the major bank’s estimates to be reduced again in March for the near term. Moreover, he drew attention to some positive things, including soaring employment and consumption.

The expert told that the EU’s key financial institution could push back the timing of its first post-crisis rate lift if required.

Similar

Latest news

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera