Euro Banks

enero 25, 2013 § Deja un comentario

The news du jour.

ECB Says Banks to Repay More Than Forecast of 3-Year Loan

The European Central Bank said banks will next week repay more of its emergency three-year loans than economists forecast in another sign the euro region’s debt crisis is abating.

Some 278 financial institutions will return 137.2 billion euros ($184.4 billion) on Jan. 30, the first opportunity for early repayment of the initial three-year loan, the Frankfurt- based ECB said in a statement today. That compares with the median forecast of 84 billion euros in a Bloomberg News survey of economists. The ECB’s first loan totalled 489 billion euros and banks can continue to make early repayments in coming weeks.

http://www.bloomberg.com/news/2013-01-25/ecb-says-banks-to-make-137-billion-euro-loan-repayment-next-week.html

Nonetheless we have:

delinquencies…

2013-01-25_0958_del

borrowings…

2013-01-25_0910_Borrowings

I guess it’s not necessary to mention the Monte dei Paschi di Siena scandal.

This is what window dressing is, and what the banks have being doing for some time now. Some believe that the banks operating beneath book value are just plain cheap; it is this lack of transparency and excess of debasement what represent their true value.

The explanation to this scheme from European banks & regulators is that banks are now primarily funding themselves with the short term revolving lines with the ECB.

In either case banks remain an interesting investment…

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