That is, banks can source unlimited euros from the ECB at fixed interest rates for periods of at least one year. Thus European banks should not have difficulty in sourcing euro funding for some time to come, provided they hold the appropriate collateral. The ECB is intermediating the interbank market, thereby  2  See the discussion in the ECB’s latest Financial Stability Review.
3  On occasion, the sharp movements have also reflected factors including around the middle and end of the month as the reference bank bills move from one half of the month to the next. See Boge M and I Wilson (2011), “The Domestic Market for Short-term Debt Securities”, RBA Bulletin, September, pp 39–48.