Permainan judi slot online terbaik

slot hoki terpercaya

  • About
  • Contact
  • Privacy Policy
  • bitcoinBitcoin$23,075.000.33%
  • ethereumEthereum$1,598.381.11%
  • xrpXRP$0.4143252.07%
  • bitcoin cashBitcoin Cash$135.26-0.04%
Cryptovibes.com - Daily Cryptocurrency and FX News
  • Home
  • News
  • Analysis
  • Crypto
    • Tamadoge
    • Crypto Presales
  • Autotrading
    • BitVestment
    • BitProfit
    • Bit Index AI
    • Metaverse Profit
    • Today Profit
    • Quantum Code
    • Bitcode Prime
    • Bitprime Gold
    • Bitcoin Motion
    • Bitcoin Smarter
    • Bitcoin Robot Guide
    • Bitcoin Future
    • Bitcoin Millionaire Pro
    • Bitcoin Pro
    • BitiCodes
    • Bitcoin Loophole
    • Bitcoin Up
    • Bitcoin Storm
    • Bitcoin SuperSplit
    • Bitcoin Supreme
    • TeslaCoin
    • Bitcoin System
    • Bitcoin Fortress
    • Immediate Edge
    • Bitcoin Profit
    • Bitcoin Trader
    • Bitcoin Bank
    • Bitcoin Union
    • BitQT
    • Bitcoin Prime
    • Profit Compass
    • Bitcoin Champion
    • Bitcoin Optimizer
    • NFT Profit
    • Bitcoin Decoder
    • PBN Invest
    • Quantum AI
    • Celebrities
      • Teeka Tiwari Investment plan
      • Kate Winslet Bitcoin
      • Holly Willoughby Bitcoin
      • Ant McPartlin Bitcoin
      • Nicole Kidman Bitcoin
      • James McAvoy Bitcoin
      • Jim Davidson Bitcoin
      • Peter Lim Bitcoin
      • Jonathan Ross Bitcoin
      • Bear Grylls Bitcoin
      • Phillip Schofield Bitcoin
      • Mike Hosking Bitcoin
      • Ryan Reynolds Bitcoin
      • Dick Smith Bitcoin
    • Broker Reviews
      • Herdos Review
      • FXTB Review
  • Disclaimer
  • PR
No Result
View All Result
Cryptovibes.com - Daily Cryptocurrency and FX News
No Result
View All Result

ECB Cautions Of Losses As It Suffers From Decade Of Money Printing

John Wanguba by John Wanguba
December 1, 2022
in Analysis, News
Reading Time: 4min read
ECB Cautions Of Losses As It Suffers From Decade Of Money Printing
Rate this post

The European Central Bank warned on Tuesday that it might suffer a loss as rising inflation forces it to hike interest rates and pays the price of a decade of aggressive money printing.

Having hiked interest rates to curb runaway prices, the ECB must make large interest payments to commercial banks on some 5 trillion euros worth of deposits it created via very big bond purchases and cheap loans.

Those stimulus tools, employed over several years when inflation was too low, were now likely to push the ECB and some of its shareholders, such as the central banks of Germany, Belgium, and the Netherlands, into the red.

This might ultimately make some of these central banks ask for a bailout that would call into question their independence and enrage taxpayers.

“We have to fight (inflation) by raising interest rates, which results in higher interest expenses that we pay to banks,” the ECB said on its website on Tuesday. “In this case, our profit falls, and we might even make losses.”

Ironically, the central banks of the most fiscally shrewd countries will be the most severely affected because they warehouse a bigger share of bank deposits and the bonds they purchased on the ECB’s behalf yield zero or less.

The Dutch national central bank has publicly acknowledged the risk that it might require a recapitalization by its government, though finance minister Sigrid Kaag later warned this was “not yet on the table”.

European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt

The ECB, which is mainly owned by the national central banks of the 19 nations that have to use the euro and makes up 8% of the balance sheet of that so-called Eurosystem, said it had other lines of defense.

In addition to exploiting its provisions, it might milk any income that national central banks make on their monetary policy operations – such as loans and bonds.

And it may defer any remaining loss by writing it on its balance sheet as a claim against future profits – a probability also mentioned by the Bundesbank last week.

“Ultimately, the return to a positive interest rate environment supports Eurosystem profitability in the medium term,” the ECB said.

Central banks can generally operate even if they suffer losses that use up all of their capital – as has happened in recent decades in several countries including Germany. Yet ECB doctrine says it should continue to be well capitalized to preserve its independence from governments and its credibility as an inflation fighter.

And eurozone governments have largely profited from the ECB’s easy policy, both via reduced borrowing costs and via dividends paid by their national central banks, meaning that they could be expected to repay some of the money. The ECB stated:

“It is important to remember that central banks are not like ordinary companies: they can lose money and still operate effectively. Still, the principle of financial independence implies that national central banks should ultimately always be sufficiently capitalized.”

Like what you're reading? Subscribe to our top stories
Tags: BankingBanksBelgiumBusinessCentral banksECBEUEuropean Central BankGermanyInvestmentmoney printingthe Netherlands

Related Posts

Argo Blockchain Accused Of Misleading Investors In Class Action Lawsuit
Blockchain

Argo Blockchain Accused Of Misleading Investors In Class Action Lawsuit

January 27, 2023
Nissan And Renault Draw Near Overhaul Of Alliance
FX Industry

Nissan And Renault Draw Near Overhaul Of Alliance

January 27, 2023
Wall Street Titans Warn Of Pain Ahead Despite Market’s Recent Recovery
Analysis

Wall Street Titans Warn Of Pain Ahead Despite Market’s Recent Recovery

January 27, 2023
Facebook Twitter Instagram Telegram RSS Youtube

Newsletter

Like what you're reading? Subscribe to our top stories
situs qq online terpercaya
probola
Menyajikan live score bola terkini
www.jamberrynails.net
adtoken.com
Agen bola
judi online slot
daftar judi slot terbaru
situs BandarQQ Online
Situs judi online Terpercaya
poker online
judi bola
slot pragmatic
situs judi bola
situs judi bola
pragmatic play
judi bola
Situs Slot TOS885

Copyright © 2017-2019 Cryptovibes.com. Price data provided by our official partner CoinGecko.

No Result
View All Result
  • Home
  • News
  • Analysis
  • Crypto
    • Tamadoge
    • Crypto Presales
  • Autotrading
    • BitVestment
    • BitProfit
    • Bit Index AI
    • Metaverse Profit
    • Today Profit
    • Quantum Code
    • Bitcode Prime
    • Bitprime Gold
    • Bitcoin Motion
    • Bitcoin Smarter
    • Bitcoin Robot Guide
    • Bitcoin Future
    • Bitcoin Millionaire Pro
    • Bitcoin Pro
    • BitiCodes
    • Bitcoin Loophole
    • Bitcoin Up
    • Bitcoin Storm
    • Bitcoin SuperSplit
    • Bitcoin Supreme
    • TeslaCoin
    • Bitcoin System
    • Bitcoin Fortress
    • Immediate Edge
    • Bitcoin Profit
    • Bitcoin Trader
    • Bitcoin Bank
    • Bitcoin Union
    • BitQT
    • Bitcoin Prime
    • Profit Compass
    • Bitcoin Champion
    • Bitcoin Optimizer
    • NFT Profit
    • Bitcoin Decoder
    • PBN Invest
    • Quantum AI
    • Celebrities
      • Teeka Tiwari Investment plan
      • Kate Winslet Bitcoin
      • Holly Willoughby Bitcoin
      • Ant McPartlin Bitcoin
      • Nicole Kidman Bitcoin
      • James McAvoy Bitcoin
      • Jim Davidson Bitcoin
      • Peter Lim Bitcoin
      • Jonathan Ross Bitcoin
      • Bear Grylls Bitcoin
      • Phillip Schofield Bitcoin
      • Mike Hosking Bitcoin
      • Ryan Reynolds Bitcoin
      • Dick Smith Bitcoin
    • Broker Reviews
      • Herdos Review
      • FXTB Review
  • Disclaimer
  • PR

Copyright © 2017-2019 Cryptovibes.com. Price data provided by our official partner CoinGecko.

Situs sbobet resmi terpercaya. Daftar situs slot online gacor resmi terbaik. Agen situs judi bola resmi terpercaya. Situs idn poker online resmi. Agen situs idn poker online resmi terpercaya. Situs idn poker terpercaya.

situs idn poker terbesar di Indonesia.

List website idn poker terbaik.
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.