The ECB changed their forward guidance in yesterday’s meeting, signaling the hold in rates “at least to the end of 2019” along with a new round of TLTROs, in order to keep the credit flowing. Dave Lafferty, chief strategist at Natixis IM, reports: “If you were waiting for evidence that European monetary policy has turned the corner, you’ll definitely be disappointed… if not surprised.”
european banking sector
Judging by the latest valuations which have appeared in the press, the balance of the first five years of Spain’s bad bank, Sareb, is little less than disastrous. But the bank’s performance has been praised by Brussels and by Germany, who have said it has completed its objective of stabilising the Spanish financial system.
What is being called a “preventitive recapitalisation” of Monte dei Paschi is more than sufficient to provide the Italian and European banking sectors with some breathing space for the time being, avoiding the risk of contagion.
BRUSSELS | April 17, 2015 | By Alexandre Mato | Spain, Italy, Portugal and Greece are under the European watchdog scrutiny because of the fiscal rules applied to the current Deferred Tax Assets (DTAs) framework. If proven illegal state aids used to bolster capital ratios, banks would suffer a big bite (4-5%) on their capital levels. However, legislators and the Economic Committee Secretary have admitted to The Corner that they doubt the DTAs investigation was launched due to MEP concerns.