The ECB released the MFI balance sheets for April:

Interesting parts are the following:

  • Repo liabilities have started to lose strength, particularly in the case of Spain, after a rebound since the ECB LTROs.
  • Spain lost more than €30bn in deposits in April (a bit less than 2% of total deposits).
  • Debt securities issued fell considerably both for Spain and Italy.
  • Government securities holdings fell in April, reversing a trend since November (which strengthened due to financing from the LTROs). Still, Spain’s net issuance was -€13.4bn during April so the Spanish numbers are not as negative as they seem. Nevertheless, April was a difficult month for Spanish Treasuries which probably meant that Spanish banks did not take advantage of carry trade opportunities that much:

Overall, banking sectors (especially Spain’s) are stressed, with capital flight starting to become evident. The LTRO effects seem to be over though, only two months after the second 3Y-LTRO.