ECB MAY OFFER NEW "LONG-TERM LOANS" OR "SERIES OF TLTRO's" TO PREVENT TIGHTENING



A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS  REFERENCE

SOURCE:  01-22-19 - Bloomberg - "ECB May Offer New Long-Term Loans to Prevent Tightening"



MATASII SYNTHESIS:

  • The European Central Bank’s targeted longer-term refinancing operations won’t mature until 2020 but banks will already be squeezed for liquidity this year.
  • With financial institutions looking to replace some or all of the 489 billion euros ($556 billion) in outstanding loans before their maturity falls below one year -- a regulatory threshold -- the ECB is likely to offer a new series of TLTROs to prevent financial conditions from tightening, according to research by Bloomberg Economics.
  • Policy makers ended net asset purchases in December and probably won’t raise interest rates until the final month of the year.

MATASII NOTE: There is More to This Than Meets The Eye!!