ECB Plans New Bank Liquidity Operations by 2027 as Excess Reserves Drain

The ECB is preparing new liquidity injections for banks by 2027 as system excess liquidity has fallen by over €2 trillion, with banks increasingly relying on unlimited funding. Unlike past operations, these new facilities are expected to carry less favorable terms, signaling a shift toward tighter liquidity management. The move aims to address structural liquidity scarcity without reverting to crisis-era largesse.