Central banks to wind down dollar lending

FRANKFURT, Germany (AP) — The European Central Bank said Friday that it and three other major central banks will wind down their dollar-lending operations amid improving market conditions.

The ECB, along with the Bank of England, the Bank of Japan and the Swiss National Bank, plans to stop lending dollars to banks for three-month periods at the end of April. The ECB said the step was taken "in view of the considerable improvement in U.S. dollar funding conditions and the low demand for U.S. dollar liquidity-providing operations." In other words, banks are getting by fine without having to tap the central banks for loans denominated in dollars.

The central banks will continue lending dollars over one-week periods until at least July 31. The ECB says it will address "in due course" whether such operations need to continue. Central banks serve as lenders of last resort for banks, ensuring that banks always have credit available to keep operating even during times of turmoil.

Related Headlines

  • European lending lags, sign recovery remains weak

    New figures show that European banks are lending less to companies — another sign the continent's economic upswing remains less than robust. The European Central Bank reported ... 

  • Germany: will decide quickly on new ECB executive

    Germany's finance minister on Monday said Berlin will decide quickly on a replacement for a top European Central Bank official who is returning to domestic politics, and ... 

  • Mario Draghi

    ECB launches major review of banks

    The European Central Bank is launching a review of 128 of the eurozone's biggest banks, a push to restore faith in the financial system — and lay the groundwork for growth — ... 

  • ECB pushes for new bank agency to start next year

    The European Central Bank is pushing for the quick setup of an agency that can restructure failing banks, saying the new entity can be set up under the existing European Union ... 

Find the best rates

Find your future job here