Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Banks Are Hoarding Cash Again
Eurozone banks are piling up cash with the ECB despite negative rates. Lucas and Luna examine the forces behind this paradox, from the tail end of TLTRO repayments to the looming impact of Basel III liquidity rules. With the ECB's deposit facility at a record 3.2 trillion euros and banks' excess liquidity climbing, they question whether this is prudence or a sign of a lending slowdown. The conversation digs into how this cash hoarding could shape the euro's trajectory and what it means for the broader economy.
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The skinny
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