Friday, December 30, 2011

ECB Balance sheet.

H/T Acting Man

Their conclusion on collateral:
We will soon find out whether the ECB's recent measures on expanding the pool of eligible collateral will indeed have the desired effect. It is clear that for weaker banks in the euro area the decision to allow the pledging of 'other credit claims' held on the balance sheets of commercial banks could be a life-saver. Unfortunately this also means that inefficient institutions won't be weeded out, but instead will continue to be a millstone around the economy's neck.



Post a Comment

<< Home