The European Central Bank on Thursday got rid of a subsidy on over 2 trillion euros of loans to banks to encourage them to repay early, a move designed to mop up excess cash but which was criticised by the banking industry. The ECB has come under pressure to change the terms of its Targeted Longer-term Refinancing Operations (TLTRO) because the generous rate offered at the height of the COVID-19 pandemic now allowed banks to make a guaranteed profit at the ECB’s expense. As well as being costly for the ECB, this source of cheap cash was getting in the way of its fight to lower inflation, which is running at close to 10% in the euro zone.
— Read on ca.finance.yahoo.com/news/ecb-gets-rid-subsidy-bank-133855376.html