ECB tells lenders to regularly tap central bank liquidity
Banks should include refinancing operations in day-to-day liquidity management, say Buch and Schnabel
Lenders in the eurozone should make tapping central bank liquidity part of their day-to-day operations, two senior officials at the European Central Bank have said.
In a blogpost today (March 18), Claudia Buch, chair of the ECB supervisory board, and Isabel Schnabel, a member of its executive board, say the European banking system is operating with a “high level of excess liquidity”. This, they say, means lenders’ demand for central bank liquidity is currently low.
However, Buch and Schnabel note
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