Friday, December 23, 2011

ECB lends banks $639 billion over 3 years (AP)

FRANKFURT, Germany ? The European Central Bank is lending euro489 billion ($639 billion) to the continent's banks for an unprecedented three years in an effort to bolster Europe's stressed financial system.

The ECB said Wednesday that 523 banks took the loans. It didn't identify the banks involved.

Demand far exceeded market expectations of around euro300 billion.

It was the biggest ECB bank liquidity operation ever, surpassing the euro442 billion in one-year loans from June, 2009.

The ECB previously had given credit over periods of 13 months at most. Extending that is meant to reassure markets that banks will have long-term financing amid tensions triggered by the eurozone debt crisis.

The ECB has served as lender of last resort for banks when they cannot borrow elsewhere.

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/ap/20111221/ap_on_bi_ge/eu_europe_financial_crisis

st nicholas st nicholas chargers mindy mccready mindy mccready cliff harris cliff harris

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