Europe Relaxes Borrowing Rules
BY DAVID ENRICH AND SARA SCHAEFER MUÑOZ
As struggling European lenders seek lifelines by borrowing from the European Central Bank, individual central banks in the euro zone are expanding the types of assets that can be pledged to tap the loans. But not all collateral is created equal.
Seven of the 17 euro-zone central banks are crafting rules that will increase the diversity of assets that banks are permitted to pledge, enabling the firms to borrow an estimated €200 billion ($264 billion) more than under the old rules.
In an aspect of the plan that is drawing scrutiny, each central bank is able to tailor its requirements …
Article source: http://online.wsj.com/article/SB10001424052970204883304577221301377525014.html?mod=googlenews_wsj
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