EU banks shrug off mooted minimum reserves increase
Doubling of unremunerated reserves would curb Eurosystem losses, but banks doubt it will pass
The European Central Bank is weighing an increase in the minimum reserves eurozone banks must hold at their national central banks – a change that would ease mounting losses across the Eurosystem while tightening bank liquidity ratios and draining cash from euro money markets.
Market participants, however, are unconvinced the ECB will follow through, given its history of backing away from similar plans in the past.
“I haven’t seen any market impact off the back of the announcements. The sentiment
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