Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Eurozone Banks Are Hoarding Reserves Instead of Lending
New ECB data shows eurozone banks are parking record excess reserves at the central bank rather than lending to businesses. With the ECB's deposit facility rate still above 3%, banks earn a risk-free 3.5% on reserves while corporate loan demand stagnates. Lucas and Luna unpack why this 'reserve hoarding' is choking the recovery, how it echoes post-2008 Japan, and why the ECB's next move might be a tiered reserve system. They also touch on the strong euro and weak industrial output from the latest GDP data.
#ECB #EurozoneBanks #ReserveHoarding #ExcessReserves…
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