European Banking Industry: Difference between revisions

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However, FED has direct swap lines with Europe. This swap line is unlimited, and the ECB only has to post Euro currency as collateral to be able to get dollars. This will limit the liquidity risks in Europe for dollar needs.  <ref>https://www.ecb.europa.eu/mopo/implement/liquidity_lines/html/index.en.html</ref>  
However, FED has direct swap lines with Europe. This swap line is unlimited, and the ECB only has to post Euro currency as collateral to be able to get dollars. This will limit the liquidity risks in Europe for dollar needs.  <ref>https://www.ecb.europa.eu/mopo/implement/liquidity_lines/html/index.en.html</ref>
 
 
 
 
== References ==
== References ==