Eurobanks Seen As Big Winners In ECB’s TLTRO Program

As part of his commitment to do ‘whatever it takes’ to combat low inflation, European Central Bank president Mario Draghi announced yesterday that negative policy rates and a new TLTRO program (targeted long-term refinancing operation) that is meant to give banks reason and resources to extend loans, but could end up giving a boost to the financial sector without impacting the rest of the economy at all. TLTROs may be unhealthy for the real economy: Jefferies “There is a clear incentive for banks to take up their full allocation and benefit from a close to 3% carry yield in Italy…