Friday , February 28 2020
Home / FT Alphaville / How to solve a problem like European banking

How to solve a problem like European banking

Earlier this week, we looked at how the impact of negative rates varies by country after the ECB’s introduction of a new policy to relieve their effects.Today, Barclays has a piece of research out which points to the “structural drag” from negative rates, due to the zero bound of household deposits. In France and Germany in particular, it says, tiering only provides “partial relief”.From the note:Hence, euro area policymakers will eventually face a dilemma: do they accept lower credit growth in the euro area resulting from constrained balance sheet growth that, ultimately, reflects the negative side effects of monetary policy, or will regulators and governments provide policy relief to banks?Banks will need “radical help”, Barclays argues. It points to several outcomes. One is that

FT Alphaville considers the following as important:

This could be interesting, too:

Global Economic Intersection Analysis Blog Feed writes New Estimate For 4Q 2019 GDP Growth: No Significant Changes

Tyler Cowen writes *Free to Move: Foot Voting, Migration, and Political Freedom*

Tyler Cowen writes How the coronavirus is changing the culture of science and publication

Tyler Cowen writes Thursday assorted links

Earlier this week, we looked at how the impact of negative rates

FT Alphaville
FT Alphaville is a free daily news and commentary service giving finance professionals the information they need, when they need it. In a world where market professionals are inundated with information there is a pressing need to edit and filter, and hopefully sow a few ideas along the way. That’s where the FT Alphaville team comes in.

Leave a Reply

Your email address will not be published. Required fields are marked *