The balance of the Deutsche Bundesbank, the European payment system Target 2 is increased in July for the first time the mark of one trillion euros. According to a communication from the German Bundesbank, he was at the end of July to 1019 billion euros, compared to 995 billion euros at the end of June.
The rise comes as no surprise, since, according to all experience, the bond purchases by the European Central Bank to affect the balance. The ECB is currently equal to two bond programs to purchase in the market: in addition to the in the year 2015 enacted program you are buying since the spring, even in the context of a in connection with the Corona-crisis programme, bonds.
Are Target balances risky?
The balance of the Deutsche Bundesbank describes claims against the European Central Bank, which has, in turn, claims from the payment system, among other things, to the Central banks in Italy and Spain. Generally pronounced balances form, if Central Bank money created in a country in the Eurozone by a national Central Bank, is transferred in another country of the Eurozone.
Since the Italian state bought bonds in the framework of the governing programs of the Banca d’Italia, a lot of talk from outside the Eurozone, the root end of the seller, but traditionally, accounts in banks in Frankfurt, in the case of a purchase of Italian government bonds by the Banca d’italia first of all, Central Bank money in Rome. This is then transferred through Target to the Deutsche Bundesbank.
