What you are suggesting would have to come from the eu structural fund and not from the ecb im my opinion. The advantage the ecb has is that it can print money which the eu fund can't. I totally agree with concept but I think this can only work if the ecb prints the money, gives it to the banks and directs them to finance capital programmes. Government would then need to create special bonds the banks could buy and sell to the ecb in order to draw down funds. Government would then have the option to enter public private partnerships to leaverage up the funds. With all the money there is looking for any yeild at all I think it would draw out a lot of private money. The ecb would get way more bang for their buck this way.
I think QE in Europe would be a total waste of resources. European bond yields are already nearly zero and most sovereigns are de-leveraging so this wont kick start demand. I think the resources not allocated to QE should go into the primary market by being used to centrally finance major capital projects (public & private) across Europe that have a financial return at these historically low rates. To speed this up each sovereign in Europe should be able to assign existing projects to this central fund thereby allowing a balance of individual sovereign de-leveraging / increased spending.
What really matters. Seeing as AIB and BOI are joined at the hip its safe to assume lending at BOI is equal or better to the report from goodbodys below.
The Director of Personal & Business Banking at AIB yesterday indicated that lending at the bank in the Republic of Ireland increased to €6.8bn in the first eight months of the year. The figure includes €1.6bn to corporate customers and €3.7bn to SME customers, so presumably the balance of €1.5bn is a mix of mortgage, personal lending and CRE lending. Mr Byrne indicated that the SME figure represented an increase of 52% yoy. At the half year, AIB indicated that approvals in Ireland were €4.6bn in the first six months of the year. If the €6.8bn figure represents apjprovals, it represents an 11% acceleration in the rate of approvals on the H1 run rate. However, if it represents actual drawdowns, it will indicate a substantial acceleration in Q3 given approvals will have outpaced drawdowns in H1. Either way, it indicates AIB is well on track to meet with €7-10bn new lending targets for 2014.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.