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ECB Lends 131.9 bn in 3 Month Funds

ECBAs banks faced the refund of close to half a trillion Euros in 12-month funds, the European Central Bank provided the banks with 131.9 billion Euros, in three-month funds on Wednesday.

About 171 banks had borrowed funds at a flat rate of 1% in the operation; the ECB said which was below expectation.

In the three-month operation, the amount is said to be the highest ever borrowed but muted beside the 442 billion Euros which 1,121 banks had to repay to the ECB.

The ECB's first-ever one-year loans fraction of the crisis, support it put in position at the stature of the financial crisis, which were not set to be transformed.

The comparatively low demand should however facilitate in easing worries about bank finances, which have shaken the stock markets this week.

Given the ECB was charging a moderately lofty interest rate in contrast to market rates, the analysts had said that high demand were likely to propel a warning gesture.

Although banks also have the chance to borrow unlimited six-day funds at a special operation, but it meant that there was a risk that the liquidity supplies could drop sharply, possibly putting upward force on interest rates.

As the countries including Greece, Spain and Portugal struggled to scrounge from others due to apprehensions over debt and public finances, the banks were increasingly relying on the ECB for funding.