Tomorrow the European Central Bank (ECB) may declare a series of new measures to stimulate crediting of the European banks. The options discussed include loosening the requirements for banks so that they have greater access to funds at the ECB and the provision of long-term loans to ensure the flow of credit to the economy, state officials asked for anonymity because of confidentiality of conversations. The two sources claim that the central bank is likely to again lower interest rates by a meeting tomorrow to be decided by how much. The ECB wants more to get banks to resume lending rather than increases the amount government bonds purchased. Eurozone governments to take measures to restore investor confidence seems to give results. Yields on Italian and Spanish government bonds fell after Germany and France agreed to build a fiscal union in the Eurozone.
“Tomorrow the ECB’s role will be largely associated with the banks is expected after the meeting liquidity in the sector to improve significantly”, said Silvio Peruzo, an economist at Royal Bank of Scotland Group Plc in London. “Division of tasks is quite clear , the ECB takes care of the banks and European governments on fiscal policy”, he said.

The European banks will be subjected to more frequent stress tests to be strengthened, thus investor confidence in the banking system in the old continent. It told the Bloomberg European Commissioner for Economic and Monetary Policy Commissioner Olli Rehn, specifying that regulatory authorities in the European Union (EU) to consider in what interval to repeat testing of credit institutions in Europe. According to Olli Rehn, stress tests are very important and useful tool for restoring confidence in the financial system and ensure transparency in the banking sector. He added that through them that will provide information for making a solid and reliable analysis of its condition. Olli Rehn plans to discuss the introduction of more frequent testing of banks with the 27 EU finance ministers at the meeting with them, which will be held on 7 September in Brussels. Financial regulators in Europe each year to undergo stress tests the largest banks in the EU. In July were tested 91 of the largest European banks, which account for 65% of the banking industry on the continent. Of these, seven did not pass, including Germany mortgage lender Hypo Real Estate Holding, Greek Agricultural Bank of Greece and five savings banks in Spain. Tests showed that they have enough capital to avoid bankruptcy in case of re-recession and depreciation of government securities.
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