ECB tender reveals illiquidity

The results of the European Central Bank's latest tender indicate conditions in the market for inter-bank lending are still far from normal.

The central bank's regular monthly tender for three-month loans saw banks pay a minimum of 4.56% borrowing cost, 56 basis points higher than the ECB's 4% base rate.

The central bank could only satisfy 42% of commercial banks' requests for funding as commercial banks made €120 billion-worth of bids for the €50 billion on offer. The central bank's regular

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