Yesterday's operation drew bids from 800 banks, the first LTRO was for 523 banks. The operation put out $529.5 bn Euros in 1% 3 year loans (gross-$311 billion net) which was right in the middle of wide ranging consensus of 200 bn to 1 trillion. The First LTRO was $489.19 bn (gross) to 523 institutions/banks. The rough calculation on a per bank average between LTRO1 and 2 is $935 mn vs $661 mn per bank because of the larger number of bids this time around.
It seems the market doesn't know how to process this information yet, but it didn't take long for banks that did not take LTRO money to put out press releases stating as much. Furthermore England took a shot at the rest of Europe saying British banks don't need LTRO as they have no capitalization problems.
5 years ago
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