Europe's Latest Cheap Credit Scheme Is Falling Flat Again
The TLTRO figure (targeted long-term refinancing operation) is likely to be seen as a disappointment. After pretty poor figures in September, analysts were expecting €175 billion to be extended by Frankfurt.
The ECB wants to offer creit to banks in Europe, attached to conditions that they will turn it into loans for the private sector.
€82.6 billion ($103.4 billion) in loans were taken up by banks in the first round of lending this September. The higher the numbers, the more money that European financial institutions would likely be lending out into the economy.
If the figure is seen as low, financial markets may take that as a sign that the ECB will do more easing in the months ahead. A Bloomberg report earlier this month suggested that the central bank will go for a much more wide-ranging stimulus plan in January.