The European Central Bank lent commercial banks a record €442.24 billion at 1% today via its first offer of 12-month funds, aiming to boost credit flows.
The previous record for the central bank's refinancing operations was €348.6 billion in two-week funds on December 18, 2007 as crisis-hit commercial banks bolstered their balance sheets during the crunch year-end period.
Analysts expect the ECB's move to result in lower rates charged by commercial banks for longer-term borrowing in general.
If that happens, interest rates overall could also remain low, a crucial contribution to recovery as the euro zone grapples with what is expected to be a sluggish rebound from the worst global recession in more than 60 years.
In Paris, the OECD group of 30 advanced economies meanwhile urged authorities to keep interest rates exceptionally low and to continue to support the financial sector until a sustained recovery is underway.
The ECB has resisted the so-called 'quantitative easing' practiced by the US Federal Reserve and Bank of England - essentially printing money to buy government and private debt to boost recession-hit economies.
The ECB instead has generated a flood of cash through loans that will now extend to 371 days, or 12 months, from one week to six months in the past.
Euro zone banks will pick up all of the funds tomorrow, an ECB statement said. Analysts were sure the banks would leap at the chance to get an unlimited one-year loan at the ECB's lowest rate ever.
The central bank has said that in subsequent one-year operations - the next are scheduled in late September and December - the rate could be higher depending on market conditions.
By providing huge amounts of cash to commercial banks, the ECB wants to lower the cost of borrowing by companies and individuals, and spur economic activity.
