Health of Europe’s Banks May Be Exposed by ECB 3-Month Loans
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The health of Europe’s banks may be exposed today when the European Central Bank offers them three-month loans before a landmark 12-month facility has to be paid back.
Banks tomorrow need to repay 442 billion euros ($540 billion), the biggest amount ever awarded by the ECB and a key plank in its efforts to fight the financial crisis last year. Demand for three-month cash today will highlight how much banks still rely on the ECB for funding, investors and economists said. The ECB will announce how much money banks have asked for at about 11:15 a.m. in Frankfurt.