Commenting on the earlier LTRO repayment figures.

  • Repayment of LTRO by banks is a sign of normalisation.

While the market focuses on the amounts being repaid each week the real news, which is being kept confidential, is who is repaying. Obviously the ECB is right to keep this information to themselves, to stop panic in the banking sector, but the details will have to come out, if only at the final redemption dates. It’s something to bear in mind for the future and another subtle can kick by the ECB.