European banks are preparing to double their use of the emergency loan unlimited three years that the ECB is going to repeat to end of February (after the success in December) but the quantitative easing by "Super Mario", writes the Financial Times, referring to ECB president Mario Draghi, "is not a panacea."
According to the newspaper of the City, which sought the views of the heads of major banks in the euro area, many banks may even triple the amount borrowed last month.
And so the "Ltro” (Long-term refinancing operation) could easily reach 1,000 billion euros, compared with 489 billion," an unprecedented, touched last December. However, the extent desired by Dragons, greeted by "adulation worthy of a rock star like Mick Jagger" by the bankers at the Davos summit, "is not the panacea that everyone wants to believe".
"Italian banks had been particularly active in the first round, requiring about 116 billion of 489 billion total," noted analysts Intermonte. "We still expect a significant demand for liquidity from the Italian banking system", the experts add, that it "must meet our original expectations of ECB funding by all emissions due to the institutional segment for 2012 and much of the 2013 ".
Not everyone agrees on the threshold of the 1,000 billion assumed by the Financial Times. But the fact that the maxi loan program at the end of February there will be successful is shared. "It is not excluded that the banks' demand to be close to that property at auction in December," since institutions "may want to store funds for financing needs beyond 2012." Anna Grimaldi said, an economist at Intesa Sanpaolo, adding that the opportunity to carry trade "could weigh." The Economist notes that the Ltro has "significantly reduced systemic risk in the banking sector, but being able to quantify the effect on credit and 'complex'. "The credit that we observe is the result of supply and demand, an equilibrium value," Grimaldi said, adding that "it is difficult to say what would be the path of credit without the intervention of the ECB to support banks, because the availability of funds is only one of the factors that determine the supply of credit".
"There is little evidence that the money they are going to the real economy," said a commentary on Ft. "Ccould threaten the last bastion of strength in the global economy." Finally extend the emergency measures for three years means "to prolong the inevitable distortions" of the markets.