You are here

European Central Bank will pay banks not to shrink loan books

Section: Daily Dispatches

Banks Borrow Record 1.31 Trillion Euros from ECB

By Balazs Koranyi
Thursday, June 18, 2020

FRANKFURT, Germany -- Euro zone banks borrowed a record 1.31 trillion euros ($1.47 trillion) from the European Central Bank today, taking advantage of negative interest rates to meet growing demand for credit from companies hit by the deepest recession in living memory.

Launched six years ago, the ECB's targeted-longer term refinancing operations were redesigned earlier this year to help the economy cope with the coronavirus crisis and banks will get the cash for a rate as low as minus 1%.

... Dispatch continues below ...


Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

At 1.31 trillion euros, take up is above expectations with most analysts predicting a figure just over 1 trillion euros for the three-year loans. Forecasts were generally in the 900 billion to 1.4 trillion euro range.

Although borrowing was more than twice as big as in any previous ECB facility, the net take is smaller as banks likely rolled over around 750 billion euros worth of earlier ECB funding to take advantage of record low rates.

The negative interest rate means banks that tapped the auction will earn 0.50% for one year with no strings attached and 1% if they simply refrain from shrinking their loan book. ...

... For the remainder of the report:

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

Buyers can compose their case by choosing as many as four varietals from the list here:

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: