European banks cannot rely on central banks’ financing windows as an indefinite substitute for funding in the securitisation market, although any significant changes to the current framework could further threaten banking sector liquidity, analysts have warned.

Deutsche Bank analysts yesterday said in a research note to clients that the central banks’ facilities – which enable banks to swap illiquid mortgage-backed securities for liquid, short-term government securities – cannot remain the “de-facto securitisation” funding outlet for commercial and investment banks.