Photographer: Martin Leissl/Bloomberg

Borrowing From ECB Shows Where Banks Are Most Vulnerable: Chart

Spanish and Italian banks scoop up more than half of the money the European Central Bank provides in its regular refinancing operations, signaling that borrowing in financial markets remains difficult or unattractive for them eight years after the collapse of Lehman Brothers Holdings Inc. Banks’ balance sheets remain cluttered with non-performing loans and foreclosed assets just as revenue generation is damped by sluggish credit demand and low interest rates depressing margins. In addition to the weekly and three-months operations, the ECB will offer targeted longer-term loans next week that’ll mature in 2020.

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