Central Banks

ECB Long-Term Loan Repayments From Banks Seen Slowing This Month

  • Banks likely to hand back €213 billion, poll of analysts shows
  • Return of cheap funding is driving ECB balance sheet reduction
Lock
This article is for subscribers only.

Euro-zone banks are expected to return less cheap long-term funding to the European Central Bank this month compared with at their last two opportunities, according to economists.

The median among the eight respondents in a Bloomberg survey was for early repayments of €213 billion ($229 billion), with a range between €75 billion and €450 billion. The ECB will announce the number on Jan. 13.