Spanish banks’ borrowing from ECB drops in February (Reuters) (14-03-2011)

MADRID – Spanish banks borrowed less in February from European Central Bank than in the first month of the year, showing that way a further slide in dependence on central bank funds.

Spanish banks borrowed 51 billion euros from the European Central Bank in February, the lowest since September 2008 and below 57 billion euros in January, data from the Bank of Spain showed.

This borrowing has fallen sharply in recent months, from a record high of 140 billion euros in July, but still remains above levels seen before the financial crisis erupted.

It was approaching more normal levels, suggesting it would be unlikely to fall much more in coming months.

Spain's banking sector is undergoing a restructuring process, with its smaller, more indebted savings banks still needing to boost capital by 15 billion euros in order to meet new capital requirements.

Source: Reuters