European banks have taken off for liquidity in the European Central Bank (ECB) for many years of monetary yielding, but now from Frankfurt, they should slowly start preparing for financing surgery in the euro area.
Excess liquidity is still quite high and amounts to almost three trillion euros. Borrowing from the central bank practically did not exist in the last ten years through regular weekly and daily operations.
However, the ECB now reduces the excess, and its officials believe that this type of liquidity provision has received an unnecessary stigma through years and would need to work on changing access.
“Banks must provide operational readiness to change in the manner in which the RESPINATION reserves are made. In the bank’s standard, the banks will be prepared to be prepared to participate in the monetary policy operations,” Reuters from the Joint Publication President Supervisory Board of the ECB Claudie Buch and members of the Management Board, Isabel Schnabel.
For now, there is no urgency yet because the ECB has delayed the audit of the framework for its monetary surgeries by pointing that liquidity this year will still not be in the main focus, finance HR.
The ECB will allow 500 billion euros of bonds to be due this year, but the excess liquidity will continue to be over two trillion euros at the end of the year.
In Frankfurt, however, banks begin to prepare their IT infrastructure now and provide sufficiently trained staff to identify and mobilize collateral.
“Banks must be ready to function in the environment where there is no excessive excess liquidity and able to use a wide range of sources in a quick and measured way, as the central bank so is the market,” Bech and Schnabel.
