ECB makes it more difficult for weak banks to borrow

10/11/2010 | Wall Street Journal, The

The European Central Bank bolstered national central banks' discretionary powers and made other changes during the weekend as it aimed to address its balance sheet. The moves will make it more difficult for weaker financial institutions to borrow from the ECB. Central banks in the euro zone may "reject assets, limit the use of assets or apply supplementary haircuts to assets" that are submitted by banks as collateral for loans, according to legal documents from the ECB.

View Full Article in:

Wall Street Journal, The

Published in Brief: