🇪🇺 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

Illya Gerasymchuk 2025-08-14 20:53

ECB recorded an €8 billion loss in 2024 - what happens in that case?

that's a balance sheet question. to understand what happens we need to look into the operational or "business" model of the European Central Bank