admineurozone banks “will need another LTRO within two years”, in reference to the ECB’s long-term refinancing operations.
The central bank carried out two LTROs, in December and February, providing commercial banks a total of US$1,26 billion for three years at ultra low interest rates.
One third of those polled forecast a third LTRO by the end of this year.
“Many banks in southern Europe have become dependent on ECB facilities as their only real source of wholesale funding,” Fitch noted.
“If they are unable to de-lever (reduce debt) in time, they will likely need some assistance to be able to pay back their LTRO take up,” it added.
According to the survey, 53 percent of respondents felt that “fundamental credit conditions for banks will deteriorate — an all-time-high, up from 45 percent in the second quarter of 2012 and 38 percent in the first quarter.”
The poll was conducted among an unspecified number of investors who manage an estimated US$7,2 trillion worth of fixed income assets. — AFP.
Online Reporter
- Herald , none
- September 26, 2026
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