Central banks

The European Central Bank (ECB) is expected to end its emergency lending to Greek banks at the forthcoming meeting of its governing council on Sunday.

According to sources, Greece will probably have to "announce bank holiday on Monday, pending the introduction of capital controls", the BBC reports.

The Athens Stock Exchange (ASE) will not open on Monday if there is no liquidity “injection” by the European Central Bank via its Emergency Liquidity Assistance (ELA) mechanism, an unnamed official said on Saturday.

The ECB’s governing council will convene on Sunday in order to decide on raising the current ceiling of ELA liquidity for Greek banks.

The Governing Council of the European Central Bank will meet on Sunday to evaluate liquidity conditions in Greek banks and decide if it will increase the ceiling of funding available through emergency liquidity assistance (ELA) mechanism.

By Alessandro Speciale

Bundesbank President Jens Weidmann said the provision of Emergency Liquidity Assistance by the European Central Bank for Greek lenders raises ?serious? concerns about monetary financing, which is prohibited under European Union rules.

The European Central Bank (ECB) approved the amount of emergency funding (ELA) that Athens had requested for its banks on Thursday said a banking source.

“The Bank of Greece got approval for the ELA it requested. If necessary, the ECB Governing Council will convene again over the next 24 hours,” said the source without revealing the exact amount of funding.

The head of the Bundesbank expressed serious concern about providing continued emergency funding to Greek banks in talks with his peers this week, a person familiar with the discussion said.

By Yiannis Papadoyiannis

The banking market is showing signs of returning to normal, at least on the crucial deposits front, as bank clients appeared calmer the last couple of days at the prospect of an agreement between the government and its creditors.

 European Central Bank grants more liquidity to domestic banks as 1.7 billion euros of deposits take flight

By Yiannis Papadoyiannis

The European Central Bank has raised the ceiling on emergency liquidity Greek banks can draw from the country's central bank for the second time this week, a banking source told Reuters on Friday, declining to say by how much.

By Yiannis Papadoyiannis

Liquidity in the domestic credit system has reached its worst point as bankers consider the 1.1-billion-euro increase in the limit of the emergency liquidity assistance (ELA) granted on Wednesday by the European Central Bank to be insufficient to satisfy the local system?s requirements.