Economics
ECB Set to Hand Banks More Ultra-Cheap Cash to Boost Lending
- TLTRO takeup on Thursday could be as much as 200 billion euros
- Excess liquidity nears 3 trillion euros as ECB fights pandemic
The European Central Bank headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Euro-zone banks are gearing up for another dose of ultra-cheap funding as the European Central Bank gives them every possible incentive to lend to the pandemic-stricken economy.
Thursday’s installment of targeted loans, known as TLTROs, will give banks long-term loans for an interest rate as low as minus 1% -- meaning the ECB pays them to borrow -- as long as they lend the cash onto companies and households.