Arab Today, arab today new ecb measures unlikely to solve lending problems
Last Updated : GMT 19:12:26
Arab Today, arab today
Arab Today, arab today

New ECB measures unlikely to solve lending problems

Arab Today, arab today

Arab Today, arab today New ECB measures unlikely to solve lending problems

European Central Bank (ECB)
Beijing - XINHUA

 The latest measures adopted by the European Central Bank (ECB) to guarantee liquidity for enterprises in the real economy may not achieve their goal, an analyst said on Tuesday.
Marcello Bonassoli, assistant vice president at Canadian rating agency DBRS, told Xinhua recently that after costs, the profitability of ECB's Targeted Longer-Term Financing Operations (TLTRO) loans would be too low and make them not competitive.
A 5-percent yield on a hypothetical loan provided in connection with the TLTRO program would be reduced all the way down to 0.49 percent after taking into account the cost of the TLTRO itself, credit losses, capital costs and fixed costs, according to a simulation Bonassoli presented at DBRS's Italy Day held in Milan on Nov. 20.
The simulation assumed a default rate of 5 percent as estimated by DBRS, the major factor in reducing the profit for the bank.
Bonassoli said that the larger problem is the poor performance of the enterprises and the weak general economic situation. "You can create 150 different instruments, but if the performance isn't sufficient, they won't work," he said.
The new ECB program began in September 2014 and is scheduled to run until June 2016. The goal is to support bank lending to enterprises by making additional funding conditional upon lending activities to the real economy.
Despite previous liquidity operations and hopes for an economic recovery, credit to enterprises has continued to stay weak in numerous countries, including Italy and Germany.

 

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 new ecb measures unlikely to solve lending problems Arab Today, arab today new ecb measures unlikely to solve lending problems

 



Arab Today, arab today
Arab Today, arab today Reveals his participation in "Fashion Star" TV show

GMT 12:49 2017 Wednesday ,01 March

Reveals his participation in "Fashion Star" TV show
Arab Today, arab today Tabarka beauty between sea, mountain

GMT 06:37 2017 Wednesday ,01 March

Tabarka beauty between sea, mountain
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Russia, China veto UN resolution

GMT 07:27 2017 Wednesday ,01 March

Russia, China veto UN resolution
Arab Today, arab today NUMP's conference to discuss proplems

GMT 13:40 2017 Wednesday ,01 March

NUMP's conference to discuss proplems
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Lasers flesh out dino-bird profile

GMT 12:24 2017 Wednesday ,01 March

Lasers flesh out dino-bird profile
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Najla Badr will participate in “30 Days” drama

GMT 06:23 2017 Monday ,27 February

Najla Badr will participate in “30 Days” drama
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:54 2017 Wednesday ,01 March

Shanghai expands public smoking ban

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:27 2017 Wednesday ,01 March

GSMA: 5 billion mobile phone users in 2017

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
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