ECB Looks to Stimulate Bank Lending, Assessing Possible Options
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Because things aren't crazy enough, the European Central Bank (ECB) wants more stimulation... of bank lending.
Come on, people. Focus.
News comes from Bloomberg, others, citing three euro area policy makers familiar with deliberations.
Several options have been mulled, including giving access to cheaper cash from the ECB, loosening of asset-backed security usage by governments, and offering longer-term loans. Only 66 percent of the sources think an interest rate cut is possible.
Focus of the ECB lies solely on getting banks lending as a stimuli, rather than buying bonds in the open market.
The ECB has previously stated it would act to prevent a credit shortage. Banks are also able to get as much funding as needed from the ECB for periods up to a year, though eligible collateral must be put up.
Despite hopes for more stimulus in the crumbling Eurozone, U.S. stocks are lower out of the gate Wednesday. Just after the open the Dow is down 46, the Nasdaq is down 14 and the S&P 500 is down 6.
Come on, people. Focus.
News comes from Bloomberg, others, citing three euro area policy makers familiar with deliberations.
Several options have been mulled, including giving access to cheaper cash from the ECB, loosening of asset-backed security usage by governments, and offering longer-term loans. Only 66 percent of the sources think an interest rate cut is possible.
Focus of the ECB lies solely on getting banks lending as a stimuli, rather than buying bonds in the open market.
The ECB has previously stated it would act to prevent a credit shortage. Banks are also able to get as much funding as needed from the ECB for periods up to a year, though eligible collateral must be put up.
Despite hopes for more stimulus in the crumbling Eurozone, U.S. stocks are lower out of the gate Wednesday. Just after the open the Dow is down 46, the Nasdaq is down 14 and the S&P 500 is down 6.
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