* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, June 20, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    Safety concerns in Deep Ellum create apprehension as the entertainment district gains visitors – CBS News

    Safety Concerns Surge Amid Deep Ellum’s Booming Popularity and Growing Crowds

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    ‘Gangs of London’ Producer Explains Season 3 Deaths, Hypes Season 4 – Citizen Tribune

    Gangs of London’ Producer Reveals Shocking Season 3 Deaths and Teases Exciting Season 4

    The Iconic Missouri Diner That Gives You A Taste Of Live Entertainment With Your Meal – Yahoo

    Savor Delicious Meals While Enjoying Live Entertainment at Missouri’s Iconic Diner

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Crypto’s true revolution is about humanity, not technology – Cointelegraph

    Crypto’s Real Revolution: Transforming Humanity Beyond Technology

    $1 Billion Problem: New Technology Could Save Your Daily Cup of Coffee – SciTechDaily

    The $1 Billion Challenge: How New Technology Could Rescue Your Daily Cup of Coffee

    Canada’s construction industry gets serious about investing in technology as pressure mounts to do more with less – Yahoo Finance

    Canada’s Construction Industry Accelerates Tech Investments to Overcome Growing Challenges and Boost Efficiency

    Workforce Technology Eases Staffing Shortages in Rural Health Care – AJMC

    Workforce Technology Eases Staffing Shortages in Rural Health Care – AJMC

    Get the lead out: Putting new at-home lead testing technology to the test | Denver7 Investigates – Denver7

    Putting the Latest At-Home Lead Testing Technology to the Ultimate Test

    Further Upside For Aeries Technology, Inc (NASDAQ:AERT) Shares Could Introduce Price Risks After 27% Bounce – simplywall.st

    Further Upside For Aeries Technology, Inc (NASDAQ:AERT) Shares Could Introduce Price Risks After 27% Bounce – simplywall.st

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    Safety concerns in Deep Ellum create apprehension as the entertainment district gains visitors – CBS News

    Safety Concerns Surge Amid Deep Ellum’s Booming Popularity and Growing Crowds

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    ‘Gangs of London’ Producer Explains Season 3 Deaths, Hypes Season 4 – Citizen Tribune

    Gangs of London’ Producer Reveals Shocking Season 3 Deaths and Teases Exciting Season 4

    The Iconic Missouri Diner That Gives You A Taste Of Live Entertainment With Your Meal – Yahoo

    Savor Delicious Meals While Enjoying Live Entertainment at Missouri’s Iconic Diner

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Crypto’s true revolution is about humanity, not technology – Cointelegraph

    Crypto’s Real Revolution: Transforming Humanity Beyond Technology

    $1 Billion Problem: New Technology Could Save Your Daily Cup of Coffee – SciTechDaily

    The $1 Billion Challenge: How New Technology Could Rescue Your Daily Cup of Coffee

    Canada’s construction industry gets serious about investing in technology as pressure mounts to do more with less – Yahoo Finance

    Canada’s Construction Industry Accelerates Tech Investments to Overcome Growing Challenges and Boost Efficiency

    Workforce Technology Eases Staffing Shortages in Rural Health Care – AJMC

    Workforce Technology Eases Staffing Shortages in Rural Health Care – AJMC

    Get the lead out: Putting new at-home lead testing technology to the test | Denver7 Investigates – Denver7

    Putting the Latest At-Home Lead Testing Technology to the Ultimate Test

    Further Upside For Aeries Technology, Inc (NASDAQ:AERT) Shares Could Introduce Price Risks After 27% Bounce – simplywall.st

    Further Upside For Aeries Technology, Inc (NASDAQ:AERT) Shares Could Introduce Price Risks After 27% Bounce – simplywall.st

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

ECB to wean banks off free cash at gentlest pace

March 13, 2024
in Business
ECB to wean banks off free cash at gentlest pace
Share on FacebookShare on Twitter

ECB to wean banks off free cash at gentlest pace
© Reuters. The building of the European Central Bank (ECB) appears on the horizon during sunset in Frankfurt, Germany, December 2, 2023. REUTERS/Wolfgang Rattay/File Photo

By Francesco Canepa

FRANKFURT (Reuters) – The European Central Bank wants to wean banks off free cash but it will try to do so gently enough not to upset the financial system or lending, the result of its long-awaited Operational Framework Review showed on Wednesday.

During nearly a decade of too-low inflation, the central bank for the 20 countries that share the euro currency inundated banks with cash via massive bond purchases, with the aim of spurring them to lend and stimulate price growth.

That largely removed the need for banks to borrow from each other, and effectively pinned the overnight interest rate on the money market to the one the ECB pays on deposits.

But this exceptionally generous system is now proving costly for the ECB and national central banks, and needs adapting for a new era in which inflation and interest rates are higher and the liquidity pumped into the system is being drained.

Under the new framework unveiled on Wednesday, the ECB will give banks more incentive to lend to each other, while providing safety nets to limit the risk that lenders could run out of cash.

“The framework will ensure that our policy implementation remains effective, robust, flexible and efficient in the future as our balance sheet normalises,” ECB President Christine Lagarde said in a statement.

The ECB said the new framework should make its balance sheet “financially sound” after it and the central banks of some euro zone countries suffered large losses as a result of its past largesse.

“A financially sound balance sheet supports central bank independence and allows the smooth conduct of monetary policy,” it said in a statement.

The main features of the framework were exclusively reported by Reuters last month.

IN THE VICINITY OF 4%

The ECB said it will aim to keep the interbank rate “in the vicinity” of its deposit rate, currently 4%.

But rather than single-handedly pumping free cash into the system, it will rely more on banks lending to each other as the bonds it bought mature and excess liquidity leaves the system.

The banking sector as a whole will have more reserves than it needs until 2029, the ECB estimates, but analysts expect liquidity to become a constraint for some banks as soon as 2026.

Lenders will still be able to tap the ECB for as much cash as they like, secured with collateral, at its weekly Main Refinancing Operations and 90-day auctions.

In a bid to ease the financial penalty and the stigma for borrowers turning to the central bank, the rate on these auctions, currently 4.50%, will be lowered to reduce the spread between it and the ECB’s deposit rate to 15 basis points.

The change will take effect on Sept. 18, when the ECB may have already lowered interest rates several times as inflation steadily declines.

The ECB also plans to launch longer-term loans and bond-buying operations – which will incorporate climate considerations – once it sees its balance sheet has started growing again as a result of banks’ own borrowing.

“These operations will make a substantial contribution to covering the banking sector’s structural liquidity needs arising from autonomous factors and minimum reserve requirements,” the ECB said.

A likely implication is that future bond purchases will be focused on shorter-maturity bonds, rather than nearly all bonds on the market, like the ECB’s stimulus programmes launched over a decade of crises.

Minimum reserve requirements were left at 1%, which is likely to be a relief for banks, which would have seen their profits and cash buffers shrink if the requirements had been raised as some policymakers wanted.

“Fundamentally the ECB is sticking to the system of high excess liquidity and will hold many bonds in the long term,” Commerzbank (ETR:)’s chief economist Joerg Kraemer said.

“The ECB could have dared to bring in more normality 15 years after the end of the financial crisis.”

The ECB plans to review the new system in two years or even earlier if needed, it said.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/ecb-to-wean-banks-off-free-cash-at-gentlest-pace-after-review-3336020

Tags: banksbusinessgentlest
Previous Post

Goldman Sachs to resume bets on US property, other investors warn of more pain

Next Post

Biden to express concern over Nippon Steel’s deal for U.S. Steel, source says

Parkview Health and Trine University program provides jobs, tuition for surgical technology students – WANE 15

Exciting New Program Provides Surgical Technology Students with Paid Jobs and Tuition Assistance

June 20, 2025
Trade Idea Moves Pirates’ Dennis Santana to Red Sox – Yahoo Sports

Dennis Santana Joins Red Sox in Thrilling Trade Deal

June 20, 2025
A modeling approach to quantify ecological dynamics and functional structures of paleocommunities – Nature

A modeling approach to quantify ecological dynamics and functional structures of paleocommunities – Nature

June 20, 2025

Your Brain Emits a Secret Light That Scientists Are Trying to Read – ScienceAlert

June 20, 2025
Pre-European contact leprosy in the Americas and its current persistence – Science | AAAS

Exploring the Hidden History and Enduring Presence of Leprosy in the Americas Before European Arrival

June 20, 2025
Messi guides Inter Miami to historic victory over Porto at Club World Cup – Reuters

Messi Inspires Inter Miami to Historic Victory Over Porto at Club World Cup

June 20, 2025
The US economy is in a good place, but the Federal Reserve is not – AP News

The US economy is in a good place, but the Federal Reserve is not – AP News

June 20, 2025
Duluth Clinic welcomes psychiatrist Dr Gloria Tong – Essentia Health

Duluth Clinic welcomes psychiatrist Dr Gloria Tong – Essentia Health

June 20, 2025
Focus groups: Latino Trump voters diverge on deportations but largely still back the president – NBC News

Latino Trump Voters Divided on Deportations Yet Remain Strong Supporters of the President

June 20, 2025
Crypto’s true revolution is about humanity, not technology – Cointelegraph

Crypto’s Real Revolution: Transforming Humanity Beyond Technology

June 19, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (693)
  • Economy (707)
  • Entertainment (21,609)
  • General (15,469)
  • Health (9,749)
  • Lifestyle (713)
  • News (22,149)
  • People (711)
  • Politics (714)
  • Science (15,927)
  • Sports (21,205)
  • Technology (15,694)
  • World (687)

Recent News

Parkview Health and Trine University program provides jobs, tuition for surgical technology students – WANE 15

Exciting New Program Provides Surgical Technology Students with Paid Jobs and Tuition Assistance

June 20, 2025
Trade Idea Moves Pirates’ Dennis Santana to Red Sox – Yahoo Sports

Dennis Santana Joins Red Sox in Thrilling Trade Deal

June 20, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version