FRANKFURT, March 21 (Reuters) – The European Central Bank is
encouraging market-led initiatives to make banks less dependent
on its funding by making it easier for them to use loans as
collateral in the interbank market.

Banks, especially in crisis-hit euro zone countries, are
finding it increasingly difficult to come up with collateral to
tap ECB loans due to tougher regulatory standards and downgrades
in assets’ ratings as a result of the financial crisis.

FRANKFURT (Reuters) – The European Central Bank set Cyprus a Monday deadline to agree a bailout plan, threatening to cut off funding to the islands’ cash-strapped banks if a program is not agreed by then with the EU and the IMF.

The decision by the ECB’s Governing Council, announced on Thursday, gives Cyprus a last chance to agree a bailout that bears the EU/IMF stamp, or else succumb to financial meltdown.

FRANKFURT, March 17 (Reuters) – Asset-buying by the Bank of
England and Federal Reserve to soften the blow of the financial
crisis have only had limited impact on inflation expectations,
Bank for International Settlements research showed on Sunday.

Since 2008, the U.S. and British central banks have tried to
revive lending and support economic growth by spending billions
on government and private sector debt.

FRANKFURT (Reuters) – A wary German central bank said on Tuesday it had set aside billions more euros against what it deems risky European Central Bank moves, and criticised France directly for “floundering” in its reform drives.

Presenting Bundesbank 2012 results, Jens Weidmann, the bank’s chief, said the euro zone crisis, which has eased as a result of ECB funding promises, was not over. He urged governments to tackle the roots of their troubles with reforms.

FRANKFURT (Reuters) – The euro zone crisis is not over, France is slipping on reforms and the Bundesbank has set aside billions in new provisions for what it sees as risky European Central Bank moves, Germany’s central bank said on Tuesday.

Presenting Bundesbank 2012 results that showed a sharp increase in its risk provisions, the German central bank’s chief, Jens Weidmann, urged governments to tackle the roots of their troubles with reforms.

FRANKFURT, March 12 (Reuters) – The Bundesbank’s 2012 profit
remained broadly unchanged at 664 million euros, less than half
of what the German government was expecting, as the central bank
put more money aside to protect it from the euro zone debt
crisis.

The Bundesbank is concerned about risks the European Central
Bank has taken on to help banks through the crisis, for example
by accepting lower-rated assets in return for cash, exposing it
to larger losses if a bank fails to repay.

FRANKFURT, March 7 (Reuters) – Markets have settled after
Italy’s fractured election result and any threat of contagion to
other euro members has been muted, European Central Bank
President Mario Draghi said on Thursday, suggesting the bank is
in no mood to act.

The 17-country bloc’s central bank discussed cutting
interest rates, but decided to keep them on hold, citing
positive economic survey indicators, which in turn suggest the
ECB is ready to keep rates at 0.75 percent barring the economy
taking another turn for the worse.

FRANKFURT (Reuters) – Markets have settled quickly after Italy’s fractured election result and any threat of contagion has been muted, the European Central Bank’s chief said on Thursday, suggesting it is in no rush to take any action.

Italians delivered a strong rejection of austerity measures at elections last week and left no party grouping with enough support to form a durable government, raising the prospect of backsliding on economic reforms and debt-cutting measures.

FRANKFURT, Feb 22 (Reuters) – Banks will repay the European
Central Bank 61.1 billion euros in the second of two 3-year
loans they took a year ago, handing back less than expected in a
sign much of the euro zone financial system is still reliant on
ECB funds.

The ECB said on Friday that 356 banks had decided to repay
funds from the second loan at the earliest opportunity, on Feb.
27. A total of 800 banks tapped the operation in February 2012.

FRANKFURT (Reuters) – A bumper return of 3-year loans to the ECB would boost the case for it exiting crisis mode, a top Bundesbank official said ahead of Friday’s news on how much banks will hand back at a repayment window next week.

Joachim Nagel, in charge of market operations at the German central bank, stressed, however, that it was still unclear when the exact time for an exit would be as the European Central Bank’s monetary policy has not yet worked evenly across the 17 euro zone countries.