European banks have asked to borrow--- €489bn---- from the European Central Bank’s new three-year loan facility. This is significantly ahead of reported market forecasts of €293bn. A total of 523 banks made loan applications. They will receive the money tomorrow. The intention of the three year credit facility is to ensure banks have enough money to lend to businesses and individuals within the Eurozone. That may not be its only benefit, however. Euro-area banks have a credit crunch looming in 2012 with €230bn in bank bonds due during the first three months of next year. The European Central Bank (ECB) money will come in very handy for those repayments. |