Bloomberg News

ECB Lends $500 Million to One Euro-Area Bank in Weekly Tender

October 05, 2011

Oct. 5 (Bloomberg) -- The European Central Bank said it will lend dollars to one euro-area bank tomorrow.

The ECB today allotted $500 million to one bidder in a regular seven-day liquidity-providing operation at a fixed rate of 1.09 percent. Last week, the Frankfurt-based ECB also lent $500 million to one institution. The ECB doesn’t identify the banks it lends to.

The spreading sovereign debt crisis in Europe has heightened concerns about banks’ balance sheets, causing financial institutions to become reluctant to lend to each other. Global equity markets rallied after the ECB said on Sept. 15 it will coordinate with the Federal Reserve to offer a series of three-month dollar loans to euro-area banks to ensure they have enough of the currency for the rest of the year.

European banks need dollars to fund their own lending in the U.S. as well as to clients elsewhere doing business in the world’s leading reserve currency.

--Editors: Matthew Brockett, Simone Meier

To contact the reporter on this story: Christian Vits in Frankfurt at cvits@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus