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Euro zone banks have plenty of collateral - ECB's Constancio 

December 12, 2013
Sakari Suoninen, Reuters

There is no shortage of ECB-eligible collateral in any euro zone country meaning that banks could easily increase their use of its funding if they so wished, ECB Vice-President, Vitor Constancio, said on Wednesday.

Money market rates and the euro have both risen in recent weeks as the amount of spare ECB cash that has long kept borrowing costs pinned at record lows has continued to dwindle.

"I can tell you, there is eligible collateral in all countries, in all banking sectors right now that they could use to come to us and get very cheap funding," Constancio said at an event at the Goethe University Frankfurt.

Read more: Reuters

 
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