ECB to lend 43 billion euros to banks at weekly tender

[FRANKFURT] The European Central Bank will lend 43 billion euros (S$65.64 billion) to banks at its upcoming weekly refinancing tender, a Reuters poll of euro money market traders showed on Monday.

The amount expected to be borrowed in this week's seven-day tender is similar to the 43.2 billion euros maturing from last week.

Forecasts in the poll of 19 traders ranged from 35 billion to 55 billion euros.

The central bank is also likely to allot 6.4 billion euros at its three-month operation, less than the 7.7 billion euros taken up in the last tender.

Fourteen of 18 traders, who replied to an extra question, also said euro money markets were not impacted by the news from Deutsche bank, whose shares hit a record low on Monday.

Germany's biggest lender, Deutsche Bank said it will not rely on help from Berlin to resolve its dispute with the US Justice Department, which has demanded a US$14 billion dollar settlement in a mortgage mis-selling case.

REUTERS