Inquiring minds might be interested in knowing which banks have borrowed the most in absolute and percentage terms from the ECB via LTROs.

Courtesy of Google Translate, please consider a Ranking of Borrowings from the ECB.

After two rounds of cheap financing of the ECB European banks via LTRO (3-year loans at 1% interest) the ECB Balance sheet looks like a Botero sculpture, swollen to represent over 30% of euro area GDP.

Detail is now available that shows the level of funding requested by each bank individually. According to estimates by UBS, in a ranking where it relates the amount of funds borrowed to balance the size of each entity, the list of financial institutions that have most filled their balance sheets with cheap loans from the ECB.

Euro System Borrowing by Institution

The Portuguese Commercial Bank is in first place, followed by Bankinter, Bank of Ireland, the Portuguese also Holy Spirit, the Banco de Sabadell, Mediobanca, and BFA (Bankia). In these first 8 entities, the ECB’s cheap financing represents over 10% of bank assets, a huge figure.

Graphic via Finacial Times Alhpaville

Euro System Names n’ Numbers

A link back to Alphaville Euro System Names n’ Numbers sports an additional chart by absolute numbers.

The reference to Botero piqued my curiosity. Here is a link to 17 pages of Botero Sculpture Images.

I believe I found the perfect one that represents Mario Draghi’s LTRO programs.

Mike “Mish” Shedlock
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