Illya Gerasymchuk
Entrepreneur / Engineer
ECB says that the loss will remain on the balance sheet and will be offset by future profits the loss happened because ECB spent more than earned. they did so by using cash, selling assets or increasing liabilities the net effect is the same: reduction in equity
🇪🇺 ECB's "business model" is as follows: ➕ income: ECB creates money and invests it into financial assets (e.g.: FX, bonds, funds) ➖expenses, such as operational expanses (e.g. staff), facility and open market operation expenses (e.g. TARGET) profit/loss = income - expenses