EU banks eye debt issuance as central bank funding winds down

The projected increase would not be sufficient to replace TLTROs maturing in 2023, EBA report finds

European Union lenders plan to issue more debt instruments over the next three years to make up for an expected decline in central bank support, according to a report from the European Banking Authority.

The EBA analysis, carried out across 160 banks covering more than 80% of the EU banking sector, highlights plans to increase market-based funding by 12%, reaching €4.2 trillion ($4.97 trillion) in 2023. Senior non-preferred instruments are expected to grow by 31% over the forecast period and