Recourse to Eurosystem Funding by Spanish Banks

11 Pages Posted: 26 Jul 2018

Date Written: July 5, 2018

Abstract

During the crisis, euro area banks’ recourse to Eurosystem funding facilities was closely related to the severe tensions in the funding markets. However, since the latter part of 2014, Eurosystem refinancing operations have been essentially determined by the implementation of the single monetary policy and the need to reinforce the monetary stimulus by means of non-standard measures. The Spanish banking system currently has a relatively high level of recourse to Eurosystem funding, as a proportion of GDP and in terms of its weight in the banking sector balance sheet, although its share of total Eurosystem funding has fallen since 2014. The long maturities of this funding and the favourable conditions in the financial markets in the more recent period have afforded banks more scope to refinance or repay these debts in an orderly manner.

Suggested Citation

Gimeno, Ricardo and Del-Rio, Ana, Recourse to Eurosystem Funding by Spanish Banks (July 5, 2018). Banco de Espana Article 12/18. Available at SSRN: https://ssrn.com/abstract=3220307

Ricardo Gimeno (Contact Author)

Banco de España ( email )

Madrid 28014
Spain

Ana Del-Rio

Banco de España ( email )

Madrid 28014
Spain

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