TLTRO is Nitro for European Banks

Deposits in Europe exploded upward in March, rising by a whopping €290 billion (1.7%). But don’t be tempted to annualize that. This surge coincides with a net issuance of €245 billion in the ECB’s occasional TLTRO program. Every time the ECB has done a slug of LTRO or TLTRO, this happens. Then most of it is reversed in a few months as the useless loans for which there is no demand, are quickly repaid.

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