ECB to provide banks with dollar loans

AP News
Posted: Sep 15, 2011 9:34 AM
ECB to provide banks with dollar loans

The European Central Bank has announced plans to provide banks with dollars in three medium-term loan operations through the end of this year.

The ECB said Thursday that it had decided to launch the three-month loans in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.

Banking stocks have been hurt recently on fears that they were having trouble getting short-term loans from each other. These central bank loans would relieve that pressure.

The ECB says the tenders will be conducted in October, November and December.