The take-up of the ECB’s TLTRO program announced back in June was materially lower than expected. About €83bn worth of cheap long-dated loans was picked up by the area’s banking system. Many had expected €150bn and even greater. Part of the reason is that banks that are not quite ready to deploy the funds don’t want to sit on cash with negative rates. As a result some have concluded that the Eurozone’s credit contraction will worsen from here and economic conditions will deteriorate further.As views of doom and gloom envelop the Eurozone, it may be time time for a contrarian …read more
Source: Business Insider
