After European
Central Bank President Mario Draghi's speech at the European Parliament on
Monday, he responded as follows to questions from parliamentarians:
BANKS
"Another sign of improved confidence is the larger
than expected early repayment by counterparties in the first of our two
three-year longer-term refinancing operations settled in December 2011 and
March 2012. This indicates that banks are less uncertain about their funding
prospects than a year ago."
BANK DELEVERAGING
"If they don't do the proper deleveraging, they
won't be able to do the credit that we are really now struggling with... That's
policy challenge No.1 - we want to see the credit numbers going up."
IMPACT OF POLICY
"The ECB is aware of the challenges arising from a
protracted period of low policy rates and ample liquidity."
Translation:
We can see that Rome is burning but we are going to continue to feed the
fire because that helps the banks.
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