The European Central Bank is studying radical plans to reboot Europe’s bank lending market, a senior policymaker revealed Monday after warning that financial market tensions could wreak significant further economic damage. Ideas for a “clearing house” to boost the interbank lending market, which is at the heart of the financial system, were “potentially applicable”, said Lucas Papademos, ECB vice-president.

This entry was posted by Gwen Robinson on Tuesday, December 16th, 2008 at 5:15 and is filed under Capital markets. Tagged with ecb. Edit this entry.