ECB Governor Holzmann proposes ending interest payments on excess liquidity in commercial banks.
ECB Governor Robert Holzmann calls for an end to subsidising commercial banks through interest payments on excess liquidity. The ECB's quantitative easing program has resulted in commercial banks holding 3.2 trillion euros in excess liquidity, with the central bank paying banks a 4% interest rate, leading to major expenses. Holzmann suggests unremunerated reserves of 5-10% to help claw back costs.
April 03, 2024
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