During the past few weeks i ‘ve not commented on the ECB weekly statement since the data indicated lower pressures in the European banking system. This week’s statement is a bit different.

Asset Side

On the asset side, the weekly USD liquidity-providing operation dropped to $6.2bn, down from $8.5bn in the previous week. Lending to credit institutions increased by €1.6bn. ‘Other Claims’ (ELA) were higher by almost €3.8bn. There’s some talk that Spanish banks have started accessing the ELA facility as well. We ‘ll probably have to wait till the BdE releases its monthly data to know more on that.

Liabilities Side

Banknotes dropped €0.6bn while bank reserves increased by €29.8bn, with most of the liquidity coming from reduced General government accounts which dropped €35.9bn. ‘Liabilities to non euro area residents’ increased €6.5bn this week, reversing a downward path during the last few weeks.


This week’s MRO was much lower than last week, registering at €126.33bn compared with €131.5bn, most definitely a positive development. Still, i ‘d like to see the ‘other claims’ entry in next week’s statement before drawing any definite conclusion.