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ECB's Holzmann proposes tenfold surge in banks' interest-free minimum reserves

EditorAmbhini Aishwarya
Published 09/27/2023, 08:15 AM

In a recent development, Robert Holzmann, a hawkish member of the European Central Bank (ECB) Governing Council, proposed a significant increase in the reserves that banks are required to hold at the ECB. In an interview with WirtschaftsWoche magazine on Wednesday, he suggested a tenfold surge in interest-free minimum reserves.

Holzmann's proposal is based on the substantial profits that banks have reaped from unconventional monetary policy during past crises. He emphasized the importance of maintaining robust reserves for managing future crises effectively.

Despite expecting strong opposition from banks, Holzmann remains resolute in his stance. The ECB Governing Council member believes that his proposal is crucial for potential similar measures in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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