Banks used TLTRO to convert less liquid assets – ECB paper

A European Central Bank working paper looks at which banks used its first two series of targeted longer-term refinancing operations, or TLTROs.

In Who takes the ECB’s targeted funding?, Tomohiro Sugo and Olivier Vergote investigate the TLTROs made available to eurozone banks by the ECB between September 2014 and March 2017.

They find that three parameters were most important in determining whether banks took up TLTRO funding. These were the price of doing so, the amount of eligible collateral