Italian Banks Face Biggest ECB Cash Gap to Fill, Allianz Says
- TLTRO loan programs set to expire this year and next
- Banks can tap markets, other ECB facilities for funds
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Italian banks have the biggest need among European lenders for liquidity to replace cheap funding from the European Central Bank that’s set to expire this year and next, Allianz Global Investors said.
Banks in the country have taken up the largest amount of the so-called TLTROs, which are ultra-cheap funds designed to spur credit to the economy, relative to their reserves, according to the analysis by Simon Outin, a credit analyst at Allianz GI in Paris.