KBRA Releases Macro-Market Research: Deconstructing TARGET2 Balances – Fears Overblown or Time to Worry?
DUBLIN, Ireland--(BUSINESS WIRE)--Sep 6, 2018--Kroll Bond Rating Agency (KBRA) releases a macro-market research report, “Deconstructing TARGET2 Balances – Fears Overblown or Time to Worry?” In this report, KBRA discusses the evolution of Euro Area TARGET2 balances since the Global Financial Crisis, and the recent factors driving the re-emergence of these positions.
The commencement of the ECB’s quantitative easing programme explains most of the increase in excessive TARGET2 imbalances, but financial fragmentation in the Euro Area is also an important consideration. KBRA’s view is that TARGET2 imbalances should only pose a material risk in the unlikely, albeit not fully improbable, possibility of a Member State’s withdrawal from the Euro Area. The normalisation of monetary policy and the wind-down of quantitative easing should help alleviate excessive TARGET2 imbalances over time, although several Euro Area countries could remain exposed, especially if the political and policy environment remain uncertain.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
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Kroll Bond Rating Agency
Alan Madden, +353 (1) 669-2683
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KEYWORD: EUROPE IRELAND
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 09/06/2018 10:02 AM/DISC: 09/06/2018 10:02 AM