Bank funding blow from ECB repo withdrawal

Auto loans: still a viable asset class

With €1.3 trillion of retained securitisation hanging over the European market, credit analysts fear weaker Eurozone banking systems could face considerable rollover risk when the European Central Bank’s repo facility winds down its extraordinary liquidity provisions.

The ECB is gradually tightening the requirements for using the repo facility. On July 28, the central bank announced that as of January 1, 2011, the 5% flat rate discount levied on assets rated between BBB- and BBB+ will be replace