FRANKFURT (MNI) – The European Central Bank will continue to ensure
that banks in the Eurozone do not face liquidity constraints, its
president Jean-Claude Trichet said Thursday.
“The provision of liquidity and allotment modes for refinancing
will continue to ensure that Eurozone banks are not constrained on the
liquidity side,” Trichet said, reading from the introductory statement
at the bank’s monthly press conference in Frankfurt.
Non-standard actions by the bank will continue but “are by their
construction temporary in nature,” Trichet said.
ECB Governing Council member Luc Coene last week said that
liquidity rather than capital adequacy was the biggest challenge facing
banks in the Eurozone, as uncertainty has increased banks’ wariness of
lending to each other.
[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]
