Draghi Said to Task ECB Panel to Mull Liquidity Options Mario Draghi has asked a European Central Bank panel to study options for new bank funding measures, as policy makers try to figure out how to deal with any future liquidity shortages, two euro-region central bank officials said. While the ECB president insisted that the institution “stands ready to act according to need,” the governing council agreed that a technical committee should examine the size and maturity of new long-term refinancing operations, as well as other instruments, the officials said yesterday, speaking on condition of anonymity because the matter is confidential. The panel has no set date for a verdict, one official said. The ECB is trying to make cash operations available to banks in case increases in money-market rates caused by the winding down of stimulus by the U.S. Federal Reserve threaten the economic recovery. Draghi fueled expectations of a fresh round of long-term loans on Sept. 23, when he said that officials could deploy a new LTRO if needed. “The intention of the Governing Council is to provide liquidity assurance to the banking system,” Draghi said at a press conference after the ECB kept its benchmark interest rate on hold at a record low of 0.5 percent in Paris yesterday. “Nobody wants to have a liquidity accident standing between now and a recovery.” An ECB spokeswoman declined to comment on the matter, and referred to Draghi’s press-conference remarks. bloomberg/news/2013-10-02/draghi-said-to-task-ecb-panel-to-consider-bank-liquidity-options.html
Posted on: Thu, 03 Oct 2013 07:07:08 +0000
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