Feliu, Justine, (2017), “Why was the last TLTRO take-up unexpectedly high?”, Bruegel, 27 March
Last week the ECB published data about the take up of the fourth and last tranche of funding from the second Targeted Long-Term Refinancing Operation (TLTRO 2.0). The data showed an unexpectedly large demand for liquidity from euro area banks. In total, EUR233.47bn was allotted to 474 Eurozone banks.
Although the level of liquidity in the Eurozone remains high, banks enthusiastically took up this last opportunity to borrow money from the ECB for 4 years at negative rates. Prior to the publication of the figures, the Bloomberg consensus (the median estimate of a Bloomberg survey) was forecasting a take-up of about EUR110bn. At EUR233.47bn, the final amount is therefore more than twice what was expected.
Relevant Posts
- Merler, Silvia, (2016), “ECB TLTRO 2.0 – Lending at negative rates”, Bruegel Blog, 11 March
- Bibow, Jörg, (2016), “As The Euro Time Bomb Ticks Away The ECB Turns Desperate”, Social Europe, 9 March