ECB Injects More Money Into Bank System
The European Central Bank on Monday injected another 47.67 billion euros ($65 billion) into the banking system in a bid to soothe rattled credit markets, but said that market conditions are "normalizing."
European shares were rebounding Monday after sharp declines last week on because of global worries about dubious U.S. mortgages. Earlier Monday, Japan's central bank said it injected 600 billion yen ($5 billion; 3.6 billion euros) into money markets.
The ECB's one-day quick tender Monday was smaller than its previous injections of funds to banks 95 billion euros ($130 billion) last Thursday and a further 61 billion euros ($83.6 billion) on Friday. Those moves were made in conjunction with similar efforts by other central banks.
Accompanying Monday's operation, in which the ECB received 59 bids worth a total of 84.45 billion euros ($115.6 billion) was a calming note.
"The ECB notes that money market conditions are normalizing and that the supply of aggregate liquidity is ample," the ECB said. "With this fine-tuning operation, the ECB is further supporting the normalization of conditions in the money market."