ECONOMY

Greek lenders’ ECB funding rises in August

European Central Bank funding to Greek banks rose by 391 million euros in August while emergency liquidity assistance (ELA) from the country’s central bank decreased by 4.29 billion euros, Bank of Greece data showed on Monday.

Greek banks depend on central bank funding for liquidity.

Borrowing from the ECB is about two percentage points cheaper than ELA funding.

Reduced recourse to emergency funding at the Bank of Greece helps to boost banks’ net interest income.

ECB funding to Greek banks rose to 62.43 billion euros in August from 62.039 billion euros in July, while emergency liquidity assistance from the Bank of Greece fell to 11.71 billion euros from 16 billion euros a month earlier.

[Reuters]