The weekly financial statement of the ECB showed a 21.3 billion euro ($26.8 billion) decline in loans made under the long-term refinancing operations, known as LTROs, and shown on line 5.2 of the statement.
This likely indicates the early repayment of low cost funds provided to banks in Europe. A bank would be forced to make early repayment if collateral for the loans became ineligible because of declines in market value and the bank were unable to offer additional or substitute collateral. Additionally, a bank deemed financially unsound would be ineligible for LTRO loans…
What appears to have happened is that one or more large European banks were disqualified from borrowing under the LTRO and are now receiving funds under the ELA.
…under the ELA, emergency funding is provided by the separate national central banks instead of from the ECB directly. The risk is borne by the national central bank… But since the banks are part of the ECB system, the loans show up as assets on the ECB balance sheet.