• Time for an update on the TLTRO situation for Eurozone banks. Recall that the banks have taken out 2.1 trillion euros in TLTROs. The loans have a maturity of three years. And if the banks meet the ECB’s hurdle of keeping the size of their eligible loan book steady, they earn a gross 100bps over the borrowings during specific periods: the June 2020-June 2021 period and the June 2021-June 22 period depending on meeting the lending-to-the-real-economy threshold.
  • The ECB’s statistical data warehouses houses – you guessed it – nearly endless data series. Naturally, these include TLTRO eligible lending. The chart below shows TLTRO eligible bank loans to nonfinancial corporates and households excluding mortgages. The vertical orange line is the benchmark period from where the lending performance will be measured March 2020 and October 2020:

 

 

For the full report, click here