For Volker Wieland there is no need for further TLTROs (OMFIF Podcast)

According to Volker Wieland, the monetary policy of the European Central Bank (ECB) does not correspond to the current economic situation. "It's high time to change monetary policy and to go towards a tightening modus," he said in an interview with the British think tank Official Monetary and Financial Institutions Forum (OMFIF). In his opinion, there is neither a reason to go back to more accomodation nor to start new TLTROs.

"I don't see any need to start getting into business of TLTRO," he said. If there were banks that would love that those were probably banks in trouble. He emphasized that there were other instruments to deal with that. Wieland said: "There is no need to give Italian banks three years of cheap central bank financing to they can invest in Italian government debt, which is not helpful". He rather argued for stricter rules for government debt, introducing capital charges so that banks assess the risks associated with holding government debt.

OMFIF Podcast: Volker Wieland "Ahead of the ECB"