Morgan Stanley: “French, Italian banks lead ECB lending demand”

The Spanish investment website Consenso del Mercado published on Friday this revealing note and table from Morgan Stanley about the ECB loans.

“The deterioration of the euro zone crisis makes very difficult the necessary deleveraging process, which is estimated at €1.5 to 2.5tr during the next 18-24 months. The ECB lendings have reached two-year record highs with French and Italian banks being the ones that increased their demand the most.


“Limited access to USD financing and higher bond issue costs are strangling the capacity of banks to deleverage. We see a real risk in the securitised assets (0.5Tr), the real state sector, and especially in the Eastern and Southern Europe countries. We maintain our recommendation for Sberbank, Barclays, DnB Nor, BNP, KBC and Deutsche Bank.”

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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