Banks set to tap ECB for further €1trn

European banks could seek up to €1trn in extra funding from the European Central Bank's (ECB) emergency funding scheme in the February auction.

The amount being forecast is double the original total the ECB supplied in its debut €489bn auction last month, further highlighting the banking sector's liquidity restraints. According to the Financial Times, several leading figures from the eurozone's largest banks have said they are set to double or triple their request for funds in the ECB's three-year money auction scheduled for February 29. The ECB launched its funding facility in December 2010 in order to avert a looming credit crunch, as €230bn of bank bonds needed to be repaid in the first quarter of 2012. December's aucti...