Financial Stability News

Flashing news about financial stability and central banking

DnB NOR’s funding gap for 2012

Alphaville also reports on the take-up in the latest LTRO operation by ECB, where it is evident that banks are hoarding money to meet their own funding needs. So, very little will spill over into the real economy. There is an interesting table (from Morgan Stanley) showing individual banks and their funding needs and what has been done so far this year.

For the big Nordic banks, it seems like Swedbank, SHB and Nordea are pretty much covered, whereas Danske, SEB and DnB NOR have barely raised 10% of their wholesale funding for this year. This could make them vulnerable to further tightening in the funding market, but may be they are counting on the next LTRO on February 29?

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