As reported by Market Leader (US)
In late 2011, the European Central Bank started a new program of concessional lending for the eurozone’s financial sector. The authorities hoped that the money would finally poor into the real sector of the European economy. However, their dreams failed to come true. Banks chose to leave the borrowed funds with the ECB for a rainy day.
In December 2012, the lending volume dropped by 0.7% as opposed to December 2011. This was the 8th consecutive decline in a row. Moreover, this week some 300 European banks are planning advanced repayment. The aggregate amount is equal to € 137bn.
More analysts say that the ECB has chosen the worn way to stimulate the weakening eurozone economy as their measures have been inefficient so far. Read more...