At present, the deposits at these major banks are in excess of their loans reflecting an inflow of deposits. As a result, their funding needs in the market have been reduced. It is not certain whether undersubscription will recur in the future.
The strong monetary growth observed over the past few years, means that there is significantly more liquidity available in the euro area than needed to finance non-inflationary growth. Whether the accumulated excess liquidity will translate into inflationary pressures over the medium term depends on the extent to which past portfolio shifts are reversed and on the future strength of economic growth.