Eva's Feed
Feb 24, 2012

Companies skirt banks to get fix from ECB’s sugar rush

FRANKFURT, Feb 24 (Reuters) – European companies, fed
up with scant lending from tight-fisted banks, are turning to
new sources of financing, including preparing to tap the
European Central Bank’s low-interest loan programme directly.

Some are issuing the first corporate bonds in their history.
But those with financial arms — particularly carmakers — are
gearing up to skirt the banks and go straight to source.

Feb 9, 2012

ECB holds rates, refuses to show hand on Greece

FRANKFURT (Reuters) – The European Central Bank held interest rates at a record low on Thursday, seeing tentative signs of economic stabilization, but refused to say what part it might play in averting a ruinous Greek default.

After days of delay, Greek political leaders clinched a deal on austerity measures needed to secure a bailout to keep the country afloat.

Feb 1, 2012

ECB liquidity may ease impact of tighter bank loans

FRANKFURT, Feb 1 (Reuters) – A quarter of euro zone
banks expect to make it harder for firms to get loans in the
future, the European Central Bank said on Wednesday, although
the bank’s recent massive cash injection has eased the chance of
a full-blown credit crunch.

With the sovereign debt crisis wreaking havoc across the
common currency bloc, analysts have feared that banks might turn
off the credit taps, causing further damage to the economy, and
the ECB’s latest quarterly Bank Lending Survey indicates the
threat is real.

Jan 13, 2012

Bumper cash eases strains but bank trust elusive

FRANKFURT/LONDON, Jan 13 (Reuters) – Euro-priced
interbank rates hit new 9-1/2 month lows on Friday driven by the
excess cash in the banking system but banks worried about
lending to their peers are still parking record amounts of cash
with the ECB.

News in the European afternoon that credit rating agency
Standard & Poor’s was set to downgrade several euro zone
countries kept markets on edge.

Jan 12, 2012

ECB sees “substantial” effect from cheap loan offer

FRANKFURT (Reuters) – The European Central Bank said on Thursday its flood of cheap 3-year loans is helping banks and supporting morale across the euro zone, but it still left the door open to further interest rates cuts.

It also said the bloc’s economy was showing some signs of stabilisation in activity deep down, although it faced risks.

Dec 22, 2011

ESRB’s warns financial stresses have worsened

FRANKFURT (Reuters) – The dangers facing Europe’s financial system have continued to worsen, Europe’s recently created super-watchdog, the European System Risk Board (ESRB), said on Thursday, as it urged the euro zone to get its new rescue fund up and running.

The body, designed to give early warnings and one of Europe’s flagship responses to the financial crisis, said the trouble in the euro zone bond markets and the lack of confidence in Europe’s banks had made the risks facing the region more acute.

Dec 20, 2011

ECB tenders point to strong demand for new 3-year cash

FRANKFURT (Reuters) – Europe’s lenders almost halved their intake of European Central Bank one-week refinancing money on Tuesday as they geared up to take full advantage of the ECB’s first ever injection of unlimited and ultra-cheap three-year funding.

Banks have the first of two opportunities to get three-year money this week, with allotment announced on Wednesday.

Dec 19, 2011

ECB says risks to financial stability increased in H2

FRANKFURT, Dec 19 (Reuters) – The European Central
Bank warned on Monday risks to financial stability in the euro
zone have increased considerably in the second half of this
year, pointing most prominently to concern about growing
contagion effects from the debt crisis, and bank funding

The 17-country bloc’s central bank said that, in the worst
case, there could be a return to a global recession, which in
turn would hit the already-weak banks. It said the risk of two
large banks defaulting withing the next year had risen to the
highest level in the measure’s four-year history.

Dec 14, 2011
via MacroScope

ECB hardman Issing slates EU plans to boost IMF


Otmar Issing, former chief economist of the European Central Bank and guardian of the ECB’s soul, has slated the latest EU plans to pump another 200 billion euros ┬áinto the International Monetary Fund to help calm the euro zone debt crisis.

Issing’s former employer, the German Bundesbank, is on board as long as all EU and some outside the bloc also pay in, and as long as the money goes into a nondescript IMF account rather than a special euro zone fund.

Dec 8, 2011

ECB cool on more bond buying, lending to IMF

FRANKFURT (Reuters) – The European Central Bank doused hopes on Thursday it will ramp up its bond-buying program to fight the bloc’s debt crisis, unnerving markets hours before a high-stakes EU summit they had hoped would produce a ‘grand bargain’ to end the turmoil.

The ECB cut rates to a record low of 1.0 percent, offered ultra-long 3-year financing to banks and eased rules on the collateral it requires from banks to tap its funds.