ECB sparks bank tug-of-war over debt eligibility

Debt may only be eligible for either TLAC or central bank liquidity

tug-of-war2
ECB sets up tug-of-war between G-Sibs and regional banks

Differing legal opinions from Europe's top banking regulator have set up a clash between large and small banks over the use of their senior unsecured debt. As it stands, national authorities may have to choose whether to allow large banks to use their bonds to meet regulatory bail-in buffers, or allow small banks to use them to access central bank liquidity.

"Regional banks and landesbanken, as well as some savings banks, are especially worried about this. Though they aren't holding a lot of

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: