The ECB foresees new liquidity injections into the banking system for 2027
The system's excess liquidity has fallen by more than two trillion euros and banks have increased their use of Frankfurt's free money facility in recent months. Unlike in the past, the new operations are not expected to have super-advantageous conditions for the institutions.
The European Central Bank (BCE) is expected to launch new long-term refinancing operations for banks in 2027, according to sources close to the institution. These operations, likely to be in the form of LTROs (long-term liquidity operations), will provide banks with necessary liquidity without introducing new stimuli, and are not expected to have more favorable conditions than other liquidity sources.
The BCE is normalizing its monetary policy, and the new operations will help banks meet their liquidity needs as the excess liquidity in the system has decreased by over €2 trillion. The operations are expected to have a maturity of more than six months, but not excessively long to avoid creating dependence on these resources.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
