First Results of ANFA Agreement: ANFA Enables Financing of Bank Liquidations Via National Central Banks

At the beginning of February 2016 the ECB published a previously secret agreement called ANFA. The agreement on net financial assets is a private contract between the 20 members of the Eurosystem and sets general upper ceilings for their non-monetary policy balance sheets. In his commentary Daniel Hoffmann suggests that the agreement allows national central banks to finance bank liquidations.