The European Central Bank says euro zone banks have asked for €111.2 billion in six-day loans. This signalled stronger than expected demand from the banks as a record €442 billion in one-year loans came due.
A total of 78 banks requested the funds, the ECB said, a day after 171 banks borrowed €131.9 billion for three months.
That operation had eased market worries over a possible credit squeeze which might hamper a euro zone economic recovery.
Euro zone banks must repay €442 billion in one-year loans today. This was the largest amount the ECB had ever provided in a single operation and represented nearly half of all the cash it is currently doling out to the 16-nation area.
With some commercial banks, notably smaller ones in Germany, Greece and Spain, said to be dependent on ECB funds, observers have raised concern over a possible credit crunch that could limit lending to businesses and households.
