Europe | Massive Demand for Liquidity to Lend to Companies

Summary

Last Thursday, we learned that eurozone banks requested a large amount of liquidity (EUR 1.3 trillion) from the ECB's fourth TLTRO III operation.

Key points

• Key points:
• This is due, on the one hand, to the conditions offered by the ECB improving significantly, and, on the other, to demand for credit from companies skyrocketing.
• In comparison with previous crises, banks are better prepared to help funding reach the solvent companies that need it.
• Although high demand was expected, it came as a positive surprise that European banks requested a much higher amount than during any previous operation.

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