Financial crises and bank funding: recent experience in the euro area

This paper provides an overview of bank funding trends in the euro area following the 2007-09 global financial crisis and the euro area crisis. It shows that funding has become segmented along national borders and that secured instruments are much more prevalent than previously. Rising debt retention by euro area banks has accompanied greater dependence on liquidity provided by the ECB.

Keywords: euro area, financial crisis, bank funding, renationalisation, secured issuance, debt retention

JELclassification: G01, G21