Euro-Area Banks Facing Funding Cliff Look to ECB for Help
- Some banks are said to favor new round of TLTRO operations
- Analysts see sense in central bank renewing long-term loans
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Euro-area lenders are facing a cliff edge for their funding, and some are hoping the European Central Bank will help them out.
Around 722 billion euros ($832 billion) of long-term loans granted to banks by the ECB will start maturing from 2020, and new regulatory standards mean replacement funds could be needed as soon as next year. One concern is that lenders could be forced to refinance just as market rates rise, spurred by tighter U.S. policy and tensions such as Brexit and Italian politics.