No more unbounded funds from the ECB

Last Saturday, the European Central Bank (ECB) has strengthed the conditions to provide European banks with funds. Since the collapse of Lehman Brothers, the ECB decided to provide the banks funds in return for certain assets as collateral. These alterations make it possible for the European Central Bank to judge wether an asset gives enough security to the ECB in return for the funds they offer the banks. According to analysts, the ECB takes action against european banks who subscride easily for these funds, which have been unbouded up until now. 

Fatima De Baerdemaeker


Original article: "ECB tightens rules for liquidity injections" - the Financial Times
http://www.ft.com/cms/s/0/27ad45a0-d2f5-11df-9ae9-00144feabdc0.html