Categories: BankingRetirement Planning and Investing

ECB May Not Renew Long-Term Loans Amid Recovery

Jim D. Woodward, CC BY 2.0

ECB May Not Renew Long-Term Loans Amid Recovery (Bloomberg)

European Central Bank Executive Board member Benoit Coeure said the region’s banks may not need another round of the cheap long-term loans previously provided to fight the euro-area debt crisis and a recession. Standing credit facilities may be enough to ensure an appropriate level of liquidity, Coeure said. If not, the ECB would act, added Coeure, who is responsible for money markets at the ECB. “Tail risks are much more limited today than six months ago. So to that extent, we’re more confident in the recovery.” Coeure’s view shows a key ECB director expects financial markets to operate without the long-term refinancing operations that warded off a credit crunch two years ago. At the same time, he stressed that the central bank is still guaranteeing lenders as much short-term cash as they need until at least July 2015.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.