Banks’ Reluctance to Lend to Each Other Declines for Fifth Month
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European banks’ reluctance to lend to one another declined for the fifth month as the European Central Bank’s program of cheap loans to lenders helped offset renewed concerns the region’s debt crisis is deepening.
The Euribor-OIS spread, the difference between the euro interbank offered rate and overnight indexed swaps, was 39 basis points at 1:15 p.m. in London, data compiled by Bloomberg show. The measure has fallen every month since November when it stood at 99 basis points.