Arab Today, arab today bank borrowing in new ecb loans programme disappoints
Last Updated : GMT 21:14:26
Arab Today, arab today
Arab Today, arab today

Bank borrowing in new ECB loans programme disappoints

Arab Today, arab today

Arab Today, arab today Bank borrowing in new ECB loans programme disappoints

ECB aims to boost the eurozone economy
Berlin - AFP

The European Central Bank pumped more liquidity into the financial system on Thursday in a bid to boost the eurozone economy but analysts said the uptake by banks was disappointing.
The Frankfurt-based central bank said that 306 banks had borrowed 129.8 billion euros ($162 billion) in the second round of its lending programme of cheap, long-term loans aimed at boosting the economy.
Most analysts had forecast an uptake of around 150 billion euros under the Targeted Long-Term Refinancing Operation (TLTRO), which banks must repay by September 2018.
By pumping more liquidity into the financial system, the Frankfurt-based central bank aims to boost the eurozone economy via private-sector loans and, in turn, halt a stubborn drop in inflation.
ECB board member Benoit Coeure insisted that the latest uptake was "within the ECB's and market estimates and expectations" and noted a higher number of participants this time.
But analyst Nick Kounis, of ABN Amro, termed the impact of the latest lending programme that of a "peashooter rather than a bazooka".
Under the first round of lending in September, the ECB lent 82.6 billion euros to 255 banks, below the forecasts of analysts who had pencilled in an uptake of at least 100 billion euros.
Banks among the 18 countries that share the euro have the possibility to borrow from a pot of around 400 billion euros in the two rounds of lending in 2014.
A further six rounds of TLTRO lending are scheduled until 2016.
The programme is different from the steps the ECB took at the end of 2011 and the beginning of 2012 to boost liquidity.
At that time, banks were deemed to be not lending enough to the small- and medium-sized companies that form the backbone of the eurozone economy.
This time, the ECB is instead targeting loans to encourage banks to lend the money on.
Banks unable to prove they have increased lending to firms and households will have to repay the loans early after two years.
The loans under the TLTRO are offered at a fixed rate of 0.15 percent, slightly above the ECB's key interest rate which is currently at 0.05 percent.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank borrowing in new ecb loans programme disappoints Arab Today, arab today bank borrowing in new ecb loans programme disappoints

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank borrowing in new ecb loans programme disappoints Arab Today, arab today bank borrowing in new ecb loans programme disappoints

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday