Borrowing Continues for Italy’s Banks
by Trader Rich
Banks continue to borrow from the ECB
Recently, the ECB announced a special borrowing program, allowing banks to borrow from the central bank for three years at special interest rates. The idea is help banks shore up their balance sheets.
And, as one might expect, Italy is one of the countries that has taken advantage, with many banks seeking ECB funding. The biggest borrower is also Italy’s biggest bank, UniCredit.
Some are concerned that this state of affairs could be repeated when the ECB opens up another round of funding for auction soon. While it does seem to be shoring things up for now, it still raises questions about what’s next, and when some of these eurozone countries can stand on their own.
So far, though, the news hasn’t had much impact on the euro in forex trading, as it on the rise today.
- Euro in Forex Trading
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