Euromoney magazine releases its December issue, which includes an in-depth exclusive on the ECB: end of the last resort
ECB: The end of the last resort
Politicians and market participants, seeing investors turn their backs on the EFSF and abandon the European government bond markets, are pressing the ECB to save the day and increase its buying. That will require a dramatic change of heart. And could an already stressed ECB balance sheet even cope with the demands that such a programme would entail?
Banks are turning to the covered bond market to replace prohibitively expensive senior unsecured funding, fuelling anxious investors’ concerns over encumbrance levels. But should they be looking closer at claims elsewhere on the balance sheet?
Eurozone-based lenders dominate banking in central and eastern Europe. They have faced writedowns and intransigence in parts of the region. But good profit growth means the CEE is still the central focus of their business.
