Monday 20th May 2013
Wednesday 29th February 2012 11:41
The European Central Bank (ECB) has given a further 530bn euros in loans to 800 banks across the European Union.
The funding is intended to ease the debt crisis and help banks improve their liquidity.
"This will increase the level of excess liquidity pretty sharply, which is ultimately positive or very positive for risk trades," said banking analyst Luca Cazzulani. "Italian and Spanish bonds are likely to benefit from this and equity markets as well."
The decision has brought a marked rise in banking shares, with Commerzbank in Germany up 3.6 per cent and French bank Credit Agricole up 4.5 per cent.
Commentators said that the amount of money lent, and the number of banks which had taken part, was in line with expectations.