Oireachtas Joint and Select Committees

Wednesday, 25 February 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Professor Gregory Connor:

At that stage, ELA funding was in violation of the ECB's charter. We have it clearly stated. It is allowed to provide liquidity funding only to solvent banks, which is the definition of liquidity funding. Funding to an insolvent bank is not liquidity funding. Liquidity funding is replacing good quality assets with cash.

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