FRANKFURT (Reuters) – A rush by consumers and firms to pull their money out of Greek banks continued in June, European Central Bank data showed on Thursday, adding to the pressure on the country’s troubled banking system as doubts grow about Greece’s future in the euro.
Speculation about Greece possibly quitting the euro was intense in May when anti-bailout parties saw a strong showing in elections, but the Greek central bank said the process had reversed after the June 17 election.
FRANKFURT (Reuters) – European Central Bank Governing Council member Ewald Nowotny has broken ranks with ECB colleagues, saying that giving Europe’s permanent rescue fund a banking license to increase its capacity had merits.
Granting the fund, the European Stability Mechanism (ESM), a banking license would allow it to exchange bonds it buys to support highly indebted countries for fresh cash from the ECB, increasing its firepower without additional government funds.
FRANKFURT, July 20 (Reuters) – The European Central Bank
turned up the heat on Greece on Friday ahead of a review of its
bailout programme, saying it would stop accepting Greek bonds
and other collateral used by Greek banks to tap ECB funding, at
least until after the review.
The ECB move, which analysts said was aimed at stepping up
pressure on Athens to adhere to the commitments of its EU/IMF
bailout, will force Greek banks to turn to their national
central bank for Emergency Liquidity Assistance (ELA) funds.
Those funds will be more expensive than funds available in the
ECB’s regular liquidity operations.
FRANKFURT, July 17 (Reuters) – European Central Bank (ECB)
President Mario Draghi noted on Tuesday that the question of
burden sharing with senior bond holders is evolving in Europe, a
spokesman for the ECB said, in the first remarks to be
attributed to the president publicly on the matter.
In a limited change of policy, the ECB is now willing to see
senior bondholders take losses when banks that are not
systemically important fail, but euro zone finance ministers
oppose such a move, euro zone officials said on Monday.
MANNHEIM, Germany, July 17 (Reuters) – German analyst and
investor sentiment dropped for a third consecutive month in
July, a survey showed on Tuesday, providing further evidence
that the euro zone crisis is taking its toll on morale in
Europe’s largest economy.
But the ZEW think tank, which conducts the monthly poll,
said expectations may have now hit bottom and that the outlook
for the rest of the year should prove stable.
FRANKFURT/CASABLANCA, Morocco (Reuters) – Banks slashed the amount of money they parked at the European Central Bank after it stopped paying interest on overnight deposits on Wednesday, but there was no sign they were using it to lend more or buy the bonds of crisis-hit euro zone states.
The unprecedented cut in deposit rates to zero – approved last week – means banks now get nothing for parking cash at the ECB and officials hope that will nurture more interbank lending by encouraging lenders to look for more profitable options.
FRANKFURT, July 5 (Reuters) – The European Central Bank cut
interest rates to a record low on Thursday to breathe life into
a deteriorating euro zone economy and back up measures agreed by
government leaders last week to tackle the bloc’s debt crisis.
The quarter-point cut in the ECB’s main refinancing rate to
0.75 percent was in line with market expectations and followed a
dire batch of economic data that show even euro zone powerhouse
Germany is entering a modest downturn.
FRANKFURT, July 5 (Reuters) – The European Central Bank is
widely expected to cut borrowing costs to a record low on
Thursday to support a deteriorating euro zone economy and
complement measures agreed by government leaders last week to
tackle the bloc’s debt crisis.
Economic surveys released on Wednesday suggested even euro
zone powerhouse Germany is entering a modest downturn and
investors want the ECB to take action. The consensus forecast is
for a 1/4-percentage point cut in its main interest rate.
BERLIN/FRANKFURT (Reuters) – There is nothing to stop the European Central Bank cutting interest rates further, a senior policymaker said on Wednesday, adding to expectations it could act as soon as next week to counter dimming growth prospects and help tackle the euro zone crisis.
Executive Board member Peter Praet’s intervention followed his colleague Benoit Coeure, who said last week cutting rates was an option and one that would be discussed at the ECB’s July 5 meeting.
Jens Weidmann, Christian Noyer, Yves Mersch and the rest of the ECB’s Governing Council might want to start looking over their shoulders - Mario Draghi is now asking school pupils how the bank should set its policies.
Star secondary-school pupils from all over the Europe gathered in Frankfurt on Wednesday to display their monetary policy skills and received high praise from Draghi.