PARIS (MNI) – Banks are relying less and less on financing from the
European Central Bank, and the ECB is phasing out its non-standard
liquidity measures, Gertrude Tumpel-Gugerell, a member of the bank’s
Executive Board, said in a brief video interview.
Tumpel-Gugerell noted that the ECB’s outstanding credit to banks
has dropped by E350 billion in the past five months. “This means banks
are much more stable and able to get their own funding. They are relying
less on the ECB. This is an important message,” she said in the
interview, posted on the website of the Fountainbleau, France-based
business school Insead.
“We are now in a period of phasing out the period of
non-conventional measures,” Tumpel-Gugerell added. “We are confident
that we are in a phase where the recovery makes it easier for banks to
continue their lending. The risks have gone down, and therefore we are
in a period where we don’t think we would need additional measures.”
The Executive Board member, an Austrian, also said, “we don’t see
[an] inflation risk at the moment. We also don’t see a deflation risk.”
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