Bundesbank Vice President Sabine Lautenschlaeger said the economic impact of the European Central Bank’s loans to lenders shouldn’t be overestimated as banks are unlikely to immediately use the cash for new business, Die Welt reported in a preview of a story that will run tomorrow.
While the ECB’s three-year loans to banks won’t solve any solvency problems at lenders, they will ease the interbank market situation, the newspaper cited Lautenschlaeger as saying.
She added that while it was to “a certain degree inevitable” that the ECB had to take on more risk during the global financial crisis, Europe needs to keep the risks more carefully in mind, Welt reported.
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