Greek central bank

By Lorcan Roche Kelly

In a press release that jolted the markets, the ECB announced that it will no longer accept Greek government debt as collateral starting next week. But this news is not necessarily a potential liquidity disaster for Greek banks.

European Central Bank funding to Greek banks rose 47 percent in January from a month earlier, Greek central bank data showed on Tuesday, as deposit flight squeezed liquidity and forced the country?s lenders to increase their borrowing from the ECB.

ECB lending to Greek banks against collateral rose to 82.24 billion euros in January from 56.04 billion euros in December.

 Frankfurt examines alternatives to state collateral for supply of liquidity to Greek commercial lenders

By Yiannis Papadoyiannis

The European Central Bank's recent monetary policy actions have reduced risks in the euro zone's banking system but strong vigilance is still needed, Greek central bank governor Yannis Stournaras said on Sunday.

European Central Bank funding to Greek banks rose 3 percent in October, Greek central bank data showed on Wednesday.

ECB funding rose to 43.85 billion euros last month from 42.56 billion euros in September.

Greek banks have reduced their exposure but still depend on ECB funding for liquidity.

Greek Finance Minister Gikas Hardouvelis said in an interview published on Saturday he did not expect the European Central Bank's health checks to show major surprises for Greek banks.

Violent swings on financial markets in the past week have deepened investors' anxiety about what Europe's review of the health of its banks will reveal later this month.

The European Central Bank has reduced the haircut it applies on bonds submitted by Greek banks as collateral to borrow funds, a Greek central bank official told Reuters on Thursday, in a move to boost their access to liquidity.

European Central Bank (ECB) funding to Greek banks fell in September by 2 billion euros, Greek central bank data showed on Tuesday.

ECB funding dropped to 42.56 billion euros last month from 44.56 billion euros in August.

Greek central bank governor George Provopoulos has been formally told his six-year term will not be renewed, a Bank of Greece source said on Wednesday, ahead of an expected announcement that former finance minister Yannis Stournaras will replace him.

 Return to normal conditions may take longer than many businesspeople and other professionals think

By Dimitris Kontogiannis