EU banks’ funding plans are poised to gradually return to a pre-pandemic funding composition by 2023

The European Banking Authority (EBA) published its annual update on EU banks’ funding plans, which helps EU supervisors assess the sustainability of banks’ main sources of funding. The results of the funding plans assessment show the impact the pandemic had on EU banks’ funding composition. The plans point to a gradual ‘normalisation’ of banks’ sources of funding over the next three years. This implies in particular a partial replacement of central bank funding with market-based funding.

EBA's update can be found here.