Deposit outflows and a decrease of interbank funding have been compensated by increased borrowing of Greek banks to the Eurosystem. Due to collateral eligibility constraints, most of this funding shifted to ELA. The ECB could raise the haircut rates on the collateral pledged by Greek banks to...

Since August 2014 the Target2 liabilities of the Bank of Italy to the Eurosystem are on an upward trend. From August 2014 to September 2016 they have increased by € 223.7 billion. According to the narrative of the ECB, surging Target2 liabilities of peripheral countries of the euro area would...

To fight deflationary pressures in the euro area, the ECB has been conducting exceptional policies, such as negative interest rates on excess reserves of banks on their accounts at the Eurosystem, or massive purchases of assets, essentially public bonds. The interest rate on the main refinancing...