ECB finalises bank liquidity scheme

Click to follow

The European Central Bank is set to announce a new liquidity facility for troubled eurozone banks this week, to coincide with the results of the latest round of stress tests on troubled Irish lenders on Wednesday.

The scheme will replace the Emergency Liquidity Assistance being provided to Ireland's struggling banks by the Irish central at present and, although tailored to the Irish situation, it will be available across the eurozone if necessary.

Ireland's six major banks – including Bank of Ireland and Allied Irish Banks – still rely on the country's central bank for day-to-day operations, despite the bailout by the EU and the International Monetary Fund last year.

Wednesday's stress tests are expected to reveal a €25bn (£22bn) capital hole, within the €35bn set aside by the EU/IMF.`