The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Trichet: Efforts to get banks operating normally again

Exclusive Trichet interview: It is time for banks to start lending again


Q: The ECB is accepting an increasing array of securities as collateral from Europe’s banks in an effort to get them lending again. What pressure is this putting on the size and quality of your balance sheet?


A: All central banks in the industrialised world have been called upon to take exceptional decisions. Today we are supplying unlimited liquidity at fixed rates on a one-week, one-month, three-month and six-month basis. We have recently enlarged the eligibility criteria for collateral.


Our balance sheet is about 55% larger than it was 12 months ago. This of course is a huge leap that emerged more or less in all central banks of the industrialised countries.


Everything that we have done is aimed at enabling financial markets to function normally again.


Q: Do you have a timescale in mind for when you might begin to manage down your balance sheet?


A: I should point out that we are constantly trying to improve our own risk management taking into account the fact that we take more potential risks on our collateral, and we have already made public a number of measures in that direction that will be implemented next year.







You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree