Annual balance sheet
ECB makes loss again – no distribution for the Bundesbank
The interest rate policy of the euro currency keepers also affects the European Central Bank. The national central banks go away again. It shouldn’t have been the last year of loss.
The second year of loss in a row for the European Central Bank (ECB): A good 7.9 billion euros minus are in the balance sheet for 2024, as the central bank, based in Frankfurt, reports. This is the highest loss in the more than 25 years of history of the ECB. In 2023, the central bank had been able to push its loss to around 1.3 billion euros thanks to the dissolution of billions of bills.
The red figures also have follows for the national central banks: the usual distribution of profits of the ECB – including the Deutsche Bundesbank – is again canceled.
The Bundesbank will present its annual report on Tuesday (February 25th). In the 2023 financial year, the Bundesbank was just over a loss for bad times thanks to the Dicker Buffer for bad times. Bundesbank President Joachim Nagel had made it clear that he expects the profit distribution to the federal government for “longer time”.
ECB: future losses are probably no longer so big
The ECB also does not rule out further years. “If this is the case, these losses are expected to be lower than in the years 2023 and 2024. After that, the ECB is expected to make profits again.”
The central bank emphasized that the temporary loss was a result of necessary monetary policy decisions. Nevertheless, the ECB could work efficiently and fulfill its main task: to ensure price stability in the currency area of the 20 euro countries.
Effects of interest policy
Starting in the summer of 2022, the ECB had increased interest rates rapidly to get the high inflation under control. In the meantime, the rate of inflation of records is far away, so the ECB has reduced the key interest rates in the euro area.
Higher interest rates on the financial markets led to rising interest expenses on the side of the central banks, with which the interest income did not keep up. At the same time, the securities lost in terms of value. The ECB’s interest expenses lasted 6.98 (previous year: 7.19) billion euros. The ECB put the value adjustments to 269 (38) million euros.
dpa
Source: Stern
