FRANKFURT, Sept 25 (Reuters) – It has been billed as a make
or break moment for Europe’s banks: the publication of rigorous
industry-wide health checks next month after three previous
tests failed to spot problem lenders.
Yet – seven years after huge bank losses drove some
countries to the brink of bankruptcy – investors braced for a
grim reckoning this time will be disappointed. The European
Central Bank, under pressure from Rome, Berlin and other
capitals seeking to protect their recovering patients, is
instead likely to temper its judgement.
FRANKFURT (Reuters) – European Central Bank plans to bolster lending to business were dealt another setback on Friday after banks decided to repay billions of euros of cheap ECB credit, sapping money available to lend to business.
The news came a day after the central bank’s fresh offer of up to 400 billion euros (314.33 billion pounds) of low-cost loans fell flat, casting doubt on its plans to shore up the euro zone’s faltering economy.
FRANKFURT, Sept 18 (Reuters) – The European Central Bank saw
far less demand than expected on Thursday for its new four-year
loans to banks, raising doubts about a stimulus package it hopes
will stave off deflation and revive the euro zone economy.
The launch of the scheme, a central plank of the ECB’s
efforts to coax reluctant banks to lend, saw the euro zone’s
central bank hand out 82.6 billion euros of 400 billion euros
($515.16 billion) on offer to 255 banks.
FRANKFURT (Reuters) – The European Central Bank handed out the first of its new four-year loans to banks on Thursday, the flagship tool in a new stimulus package it hopes will stave off price deflation and revive the ailing euro zone economy.
Take-up of the 400 billion euro offer of cheap credit from the euro zone’s central bank was low but banks will get a second chance in December to apply for the cash, which is granted on condition that they lend to businesses.
FRANKFURT, Sept 14 (Reuters) – The U.S. Federal Reserve may
give clearer hints on when it will hike the cost of borrowing in
the United States in the coming week, as struggling Europe
braces for a tight vote in Scotland on whether to leave the
As the U.S. economy picks up pace, its central bank is
inching closer to raising interest rates, a move that will send
ripples across the globe. In the euro zone, however, the
European Central Bank is moving in the opposite direction in a
desperate bid to rekindle growth and inflation.
FRANKFURT (Reuters) – The European Central Bank’s surprise interest rate cut and new schemes to bolster lending have allowed its president to swerve a thorny debate over full-scale money printing in the hope that such a move may never be needed.
Armed with a plan to lend to banks in return for giving credit to companies, a pledge to buy parcels of repackaged debt as well as record low borrowing costs, the ECB may have done enough to stop Europe’s fragile economy from sliding further.
FRANKFURT, Sept 5 (Reuters) – The European Central Bank’s
surprise interest rate cut and new schemes to bolster lending
have allowed its president to swerve a thorny debate over
full-scale money printing in the hope that such a move may never
Armed with a plan to lend to banks in return for giving
credit to companies, a pledge to buy parcels of repackaged debt
as well as record low borrowing costs, the ECB may have done
enough to stop Europe’s fragile economy from sliding further.
FRANKFURT, Aug 13 (Reuters) – Portugal is making the same
costly mistake as Ireland by rescuing a troubled bank and
largely sparing its bondholders losses, one of the architects of
Ireland’s bailout has warned.
Shortly after finishing a painful economic overhaul in
return for emergency loans, Portugal recently unveiled the
surprise rescue of a major bank with an injection of almost 5
billion euros ($6.7 billion) chiefly using state funds.
FRANKFURT (Reuters) – Investors will gauge the strength of the euro zone’s fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.
In stark contrast to the United States and Britain, which are growing strongly, economic output in the euro bloc is likely to have all but ground to a halt in the three months to June. Its star economy, Germany, is losing momentum and Italy is sliding back into recession.
FRANKFURT (Reuters) – The Ukraine crisis has heightened risks to the euro zone’s weak and uneven economic recovery, and a tit-for-tat sanctions war could compound the problem, the European Central Bank said on Thursday as it held borrowing rates at record low levels.
ECB President Mario Draghi cited instability across the Middle East as well as tensions between Russia and Western countries over the conflict in Ukraine among factors weighing on growth in the single currency area. Moscow has retaliated for European Union sanctions by halting imports of food from Europe.