Central Banks
ECB Weighs Options to Limit Banks’ Gains From Crisis Loans
- Policymakers see legal basis to change TLTRO lending terms
- New tiering system, changes to reserve management also options
This article is for subscribers only.
The European Central Bank is searching for ways to stop lenders from profiting unduly as it raises interest rates to combat record inflation.
The issue concerns about €2.1 trillion ($2 trillion) of ultra-cheap loans, known as TLTROs, that were granted at the height of the pandemic to keep credit flowing and stave off deflation.