European Banks Are In Desperate Need Of Borrowers: Where Will They Come From?

European banks with excess reserves have two choices: first, deposit them with ECB -- and pay ECB for this privilege -- or lend this money out and get paid by the ECB for doing so! Simply put, under the new ECB policies excess reserves have become a toxic asset that can burn bank balance sheets, unless these reserves are lent out. That's why European banks desperately need borrowers. Under normal financial circumstances that wouldn’t be difficult. But the post Great Recession world isn’t a n...