Arab Today, arab today german central bank chief criticises ecb asset purchase plan
Last Updated : GMT 14:16:15
Arab Today, arab today
Arab Today, arab today

German central bank chief criticises ECB asset purchase plan

Arab Today, arab today

Arab Today, arab today German central bank chief criticises ECB asset purchase plan

Bundesbank president Jens Weidmann
Berlin - AFP

 Germany's central bank chief Jens Weidmann voiced concern about the European Central Bank's latest asset purchase plan to stimulate the eurozone's moribund economy, in an interview published Sunday.
ECB president Mario Draghi on Thursday announced purchases starting later this year of covered bonds and asset-backed securities (ABS) to inject cash into the ailing economy of the currency bloc.
Bundesbank president Weidmann told Focus news weekly that if the ECB buys loans of "weaker quality" then "credit risks assumed by private banks would be passed on to the central bank and thus the taxpayer, without adequate compensation".
ABS are bundles of individual loans such as mortgages, auto credit and credit-card debt which are sold on to investors, allowing banks to share the risk of default and freeing up funds to offer more credit.
The ECB believes the market for such securities -- an important source of financing for banks to keep lending to small and medium-sized enterprises -- has effectively dried up since the financial crisis.
Critics, especially in Germany, say it was complex financial derivatives such as ABS which were the root of the US sub-prime crisis in 2008.
A lawmaker and fiscal policy expert of Germany's ruling conservative Christian Democrats, Norbert Barthle, told Focus he feared that bad loans from crisis-hit eurozone countries could end up with German taxpayers.
"Such a redistribution of risks is not among the tasks of the central bank," he told the the news weekly.

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 german central bank chief criticises ecb asset purchase plan Arab Today, arab today german central bank chief criticises ecb asset purchase plan

 



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 german central bank chief criticises ecb asset purchase plan Arab Today, arab today german central bank chief criticises ecb asset purchase plan

 



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 Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
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