The European Central Bank (ECB) last year suffered the first annual loss on its balance sheet since 2004 as its sizeable bond holdings left it exposed to rising interest rates.

The bank’s 2023 annual accounts, which it made public on 22 February, show that it made a loss of €1.3 billion ($1.4 billion). The figure would have been substantially larger, but the ECB spent €6.6 billion in using up its entire provision for financial risk. The loss will remain on the balance sheet to be offset by future