ECB: Low take-up for TLTRO – Danske Bank

Danske Bank analysts point out that in the ECB's TLTRO3.2 operation (December 2019), banks took only EUR97.7, much below their expectations with 122 b  |  12/12/2019 12:57

Danske Bank analysts point out that in the ECB's TLTRO3.2 operation (December 2019), banks took only EUR97.7, much below their expectations with 122 banks participating in the operation.

Key Quotes

“The September operation only saw EUR3.4bn. This needs to be seen in the context of the EUR146.8bn that banks will voluntarily repay later this month, as already announced last week. Despite the low take-up resulting in net liquidity drainage of almost EUR50bn, the ECB and markets should not be concerned with excess liquidity still above EUR1.7trn, which is far above the level at which we would expect short-end rates to be materially moved by excess liquidity levels.”

“The TLTRO operations will run quarterly until March 2021, so banks will have plenty of opportunities to take liquidity. There are solid reasons why banks may want to wait for the take-up.”

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com