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*TOP NEWS* Central banks

Reuters: [2008-05-09 16:51:00]

............................................................... 
For news and data, double-click on the codes in brackets. 
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.............................................................. 
> ***SNAPSHOT - WORLD KEY OFFICIAL INTEREST RATES***  [INT/RATE] 
> FACTBOX-Global interest res                     [GLOBAL/INT] 
............................................................... 
> ECB says euro zone banks toughening lending rules [nL09409883] 
> Swedish c.bank's Rosenberg-can't rule out rate cut[nL09246392] 
> Australia cenbank pins hopes on demand slowdown    [nSYD92347] 
> Australia central bank raises inflation forecast    [nSYD1019] 
> Hungary cbanker says May CPI key to rates         [nL09733286] 
> Polish rates seen flat in May, hike in June       [nL08634517] 
> S.Africa cbank says focus is inflation, not curren[nL09205706] 
> Indonesia cbank: hard to bring inflation below 9 pc[nJAK33869] 
> Egypt cbank raises rates 50 bps to curb inflation  [nL0994079] 
> Iceland c'bank official warns on volatile crown   [nL09692007] 
> Indonesia cbank: hard to bring inflation below 9 pc[nJAK33869] 
............................................................... 
> The outlook for Federal Reserve policy             [FED/AHEAD] 
> Reuters coverage of Basel II accord            [ID:nL10281706] 
............................................................... 
 UPCOMING CENTRAL BANK MEETINGS, EVENTS 
| Fed              June 24/25 | BOJ                  May 19/20 | 
| ECB                  June 5 | BoE                   June 4/5 | 
| BOC                 June 10 | RBA                     June 3 | 
| Riksbank*            July 2 | RBNZ                    June 5 | 
| Swiss Nat Bank      June 19 | Norges Bank             May 28 | 
 * Announcement July 3               
 
> Major central bank events                          [CEN/DIARY] 
> Diary of emerging market central bank events        [CEN/EMRG] 
................................................................ 
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| US Fed Funds rate  [FED/R]  | ECB rates           [ECB/INT] | 
| British rates    [BOE/INT]  | Canadian rates       [CA/INT] | 
| Japanese rates   [BOJ/INT]  | Chinese rates      [CNY/POLL] | 
| Australian rates  [AU/INT]  | Swiss rates         [SNB/INT] | 
| Swedish rates     [SE/INT]  | South African rates  [ZA/INT] | 
| Top poll news      [POLL/] 
 ............................................................... 
 LATEST NEWS ON CENTRAL BANKS 
| Central bank news     [CEN] | U.S. Federal Reserve     [FED] | 
| Bank of Japan         [BOJ] | European Central Bank    [ECB] | 
| Swiss National Bank   [SNB] | Bank of England          [BOE] | 
| All forex news        [FRX] | Economic indicators      [ECI] | 
| Central Bank index<CENTRAL1>| Central bank rates<KEYRATES/1> | 
T ............................................................... 
 CENTRAL BANKERS' COMMENTS 
| Federal Reserve[FED/QUOTES] | ECB                [ECB/QUOTES]| 
| Bank of England[BOE/QUOTES] | Swiss National Bank[SNB/QUOTES]| 
| Sweden Riksbank[RIK/QUOTES] | 
 ............................................................... 
 DIARIES 
| Fed diary       [FED/DIARY] |  ECB diary         [ECB/DIARY] | 
| Today's FX market[MI/DIARY] |  Financial events  [KEY/DIARY] | 
| Diary index     [IND/DIARY] |  Polling diary    [POLL/DIARY] | 
 .............................................................. 
 WEB ADDRESSES 
 Federal Reserve: http://www.federalreserve.gov/ 
 Bank of Japan: http://www.boj.or.jp/en/index.htm 
 European Central Bank: http://www.ecb.int/index.html 
 Bank of England: http://www.bankofengland.co.uk/ 
 Bank of Canada: http://www.bankofcanada.ca/en/ 
 Swiss National Bank: http://www.snb.ch 
 .............................................................. 
 ((David Stamp; London Treasury Desk +44 207 542 7716)) 
  

DIARY - European Central Bank (ECB) events to July 3

Reuters: [2008-05-09 15:46:00]

  ======================================================      
This diary includes speeches and public appearances by members of the ECB's 
Governing Council, which sets monetary policy for the 15-nation euro zone. 
Refinancing tenders are listed at the bottom of this diary. 
 
Some ECB events are also listed at http://www.ecb.int/events/html/index.en.html 
All details of events are provisional, and inclusion of an event on this diary 
  does not necessarily mean Reuters will cover it. 
     
    For euro zone economic data, please double-click on: 
    <EUROLANDMAY> for indicators released this month or 
    <EUROLANDJUN> for indicators released next month 
     
    For other related diaries, please double-click on: 
    [CEN/DIARY] - Major central bank events for 2008 
    [M/DIARY]   - Top economic events worldwide, 
    [IND/DIARY] - Index of  all Reuters diaries.     
    [MI/DIARY]  - Highlights of today's top events of interest 
                  to money markets.     
     ----------------------------------------- 
  
 MONDAY, MAY 12 
 MADRID- ECB Executive Board member Jose Manuel Gonzalez-Paramo 
gives a speech at a conference organised by the Escuela de 
Finanzas Aplicadas on "The financial crisis: its impact and the 
response by authorities" (1045 GMT)- 
 
MILAN- Start of three-day forum "The Economy and The Open 
Society". Keynote speech delivered by ECB President Jean-Claude 
Trichet (1500 GMT)- 
  
 TUESDAY, MAY 13 
 PARIS- ECB Governing Council member Christian Noyer to 
participate at the Global Interdependence Center meeting (1410 
GMT). Link: http://www.interdependence.org/- 
 
 BRUSSELS- EuroGroup finance ministers meeting- 1600 GMT 
  
 WEDNESDAY, MAY 14 
 BRUSSELS- EU Economic and Finance Ministers (ECOFIN) meeting -0700 GMT 
  
 THURSDAY, MAY 15 
 BRUSSELS- Brussels Economic Forum (to May 16) EU Economic and 
Monetary Affairs Commissioner Joaquin Almunia (0930-1000), Dutch 
finance minister Wouter Bos, Spain's economy minister Pedro 
Solbes speak between 1000-1145 on various panels. IMF head 
Dominique Strauss-Kahn speech at 1415-1440, Asian Development 
Bank's head Haruhiko Kuroda, ECB Vice-President Lucas Papademos, 
U.S. Treasury Undersecretary for internatioanl affairs David 
McCormick and China central bank governor Zhou Xiaochuan to 
speak between 1440-1600.- 
  
 VIENNA- 40th Annual conference of the International Capital 
Market Association (to May 16), featuring ECB President 
Jean-Claude Trichet (1140 GMT) and ECB Governing Council Member 
Yves Mersch (1300 GMT). lINK: http://www.icma-group.org/- 
  
 FRANKFURT- ECB publishes its monthly Bulletin - 0800 GMT 
  
 FRIDAY, MAY 16 
 BRUSSELS- Brussels Economic Forum (final day) ECB President 
Jean-Claude Trichet to speak (0900 GMT), Portuguese finance 
minister Fernando Teixeira dos Santos (0930), ECB Governing 
Council member Erkki Liikanen (1100 GMT).- 
  
 LISBON- ECB Governing Council Member Vitor Constancio to speak 
at a conference in Lisbon.- 
  
 WEDNESDAY, MAY 21 
 FRANKFURT- ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1230 GMT.- 
  
 THURSDAY, MAY 22 
 ELTVILLE, Germany - ECB Governing Council member Axel Weber 
opens 10th Bundesbank Spring Conference on central banks and 
globalisation (0700-0730 GMT).- 
  
 SATURDAY, MAY 24 
 JERUSALEM- Israel to host the Group of Thirty (G30) Spring 
Meeting (to May 26). Attendeed include; ECB Governor Jean-Claude 
Trichet and Bank of England Governor Mervyn King as well as the 
central bank chiefs of India and China.- 
  
 FRIDAY, MAY 30 
 LUXEMBOURG- Luxembourg Prime Minister and Eurogroup chairman 
Jean-Claude Juncker hosts the Luxembourg Financial Forum 2008. 
Themes include: Financial markets: trapped in a global crisis? 
Confidence and competence: the future of private banking. 
Eurogroup: an  assessment of the first 10 years with ECB Executive Board member 
Juergen Stark (1300 GMT)- 
  
 FRANKFURT- ECB Governing Council member Axel Weber opens a 
symposium to mark the 10th anniversary of the ECB- 
  
 FRANKFURT- ECB Governing Council member Axel Weber attends the 
opening of the University of Frankfurt's House of Finance with 
German Finance Minister Peer Steinbrueck- 
  
 SUNDAY, JUNE 1 
 FRANKFURT- 10th Anniversary of the founding of the European 
Central Bank. Link: www.ecb.int- 
  
 CANNES, France- ECB Executive Board member Jose Manuel 
Gonzalez-Paramo to give keynote speech at the Global ABS 2008 
conference (to June 4). Link: http://secure.imn.org/- 
  
 JUNE 2008 
ATHENS- ECB governing council member and governor at the Bank of 
Greece Nicholas Garganas to step down in June.- 
  
 MONDAY, JUNE 2 
 FRANKFURT- EuroGroup Finance Ministers meeting.- 
  
 TUESDAY, JUNE 3 
 PARIS- Organisation for Economic Co-operation and Development 
(OECD) Forum 2008. 'Reform to Perform - Towards a more 
prosperous, stable and sustainable future' and Climate Change, 
Prosperity and Stability (to June 4). Speakers include European 
Central Bank President Jean-Claude Trichet, WTO Director-General 
Pascal Lamy, and OECD Secretary-General Angel Gurria- 
  
 LUXEMBOURG- EU Economic and Finance Ministers (ECOFIN) meeting.- 
  
 THURSDAY, JUNE 5 
 FRANKFURT- ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 
GMT.- 
  
 FRIDAY, JUNE 6 
 FRANKFURT- ECB Executive Board member Juergen Stark addresses a 
FORUM institute conference on "The subprime crisis: challenges 
for monetary policy" (0715 GMT)- 
  
 LONDON- ECB Governing Council member Axel Weber speaks at 
Financial Markets Group public lecture on "Financial Market 
Stability"- 1700 GMT 
  
 TUESDAY, JUNE 10 
 HELSINKI- ECB Governing Council member Erkki Liikanen to speak 
at a Bank of Finland quarterly event (0800 GMT).- 
  
 THURSDAY, JUNE 12 
 FRANKFURT- ECB publishes its monthly Bulletin - 0800 GMT 
  
 THURSDAY, JUNE 19 
 FRANKFURT- ECB Governing Council and General Council meeting. No 
interest rate announcements scheduled. Any announcement about 
other issues to be released at 1230 GMT.- 
  
 WEDNESDAY, JUNE 25 
 BRUSSELS- ECB President Jean-Claude Trichet testifies before the 
European Parliament's Committee on Economic and Monetary Affairs 
(0930-1230 GMT).- 
  
 THURSDAY, JULY 3 
 FRANKFURT- ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 
GMT.- 
   
        ------Main (7-Day)--------    ----Long-term (90-Day)-----  
       Announce- Allot-    Settle-   Announce-  Allot-  Settle- 
          ment     ment      ment       ment     ment     ment 
---------------------------------------------------------------------------------May                                                         02 
           05       06       07 
           12       13       14 
           19       20       21 
           26       27       28         27        28        29 
---------------------------------------------------------------------------------June       02       03       04 
           09       10       11 
           16       17       18 
           23       24       25         24        25        26            30 
---------------------------------------------------------------------------------July                01       02 
           07       08       09 
           14       15       16             
           21       22       23             
           28       29       30         29        30        31 
---------------------------------------------------------------------------------August     04       05       06 
           11       12       13 
           18       19       20 
           25       26       27         26        27        28 
---------------------------------------------------------------------------------September  01       02       03 
           08       09       10 
           15       16       17 
           22       23       24         23        24        25            29 
      30 
---------------------------------------------------------------------------------October                      01 
           06       07       08 
           13       14       15                  
           20       21       22 
           27       28       29         28        29        30 
---------------------------------------------------------------------------------November   03       04       05 
           10       11       12 
           17       18       19 
           24       25       26         25        26        27 
---------------------------------------------------------------------------------December   01       02       03 
           08       09       10 
           15       16       17         16        17        18 
           19       22       23 
           29       30       30 
--------------------------------------------------------------------------------- 
SOURCE: European Central Bank (ECB). 
LINK: http://www.ecb.int/events/calendar/caleu/html/index.en.html 
  

DIARY - Major Central Bank events for 2008

Reuters: [2008-05-09 15:44:00]

      
     For other related diaries, please see; 
     DIARY - U.S. Federal Reserve          [FED/DIARY] 
     DIARY - Polling Unit Diary            [POLL/DIARY] 
     DIARY - Key World Financial Events    [KEY/DIARY] 
     DIARY - Political and General news    [POL/DIARY] 
     DIARY - Index of all Diaries          [IND/DIARY] 
     DIARY - G7 Economic Indicators        <ECON> 
     DIARY - Emerging Markets Cen Banks    [CEN/EMRG] 
      
     Please find below a list of dates of interest rate and 
other major announcements in 2008 from key central banks around 
the world. 
     
    ======================================================== 
     
    U.S. FEDERAL OPEN MARKET COMMITTEE 
     
    2008 
     
    Jun 24 - Two-day meeting on interest rates (to Jun. 25). 
    Jun 25 - Decision on short-term interest rates and policy 
statement at close of meeting 1815 GMT. 
    Aug  5 - One-day meeting on interest rates - 1815 GMT. 
    Sep 16 - One-day meeting on interest rates - 1815 GMT. 
    Oct 28 - Two-day meeting on interest rates (to Oct. 29). 
    Oct 29 - Decision on short-term interest rates and policy 
statement at close of meeting 1815 GMT. 
    Dec 16 - One-day meeting on interest rates - 1915 GMT 
     
    2009 
     
    Jan 27 - Two-day meeting on interest rates (to Jan. 28). 
    Jan 28 - Decision on short-term interest rates and policy 
statement at close of meeting 1915 GMT. 
     
    ======================================================== 
     
    EUROPEAN CENTRAL BANK 
    (Held in Frankfurt unless otherwise stated). 
     
    2008 
     
    May 21 - ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1230 GMT. 
    Jun  5 - ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 GMT. 
    Jun 19 - ECB Governing Council and General Council meeting. 
No interest rate announcements scheduled. Any announcement about 
other issues to be released at 1230 GMT. 
    Jul  3 - ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 GMT. 
    Jul 17 - ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1230 GMT. 
    Aug  7 - ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1230 GMT. 
    Sep  4 - ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 GMT. 
    Sep 18 - ECB Governing Council and General Council meeting. 
No interest rate announcements scheduled. Any announcement about 
other issues to be released at 1230 GMT. 
    Oct  2 - ECB Governing Council meeting, followed by interest 
rate announcement 1145 GMT. News conference follows at 1230 GMT. 
    Oct 23 - ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1230 GMT. 
    Nov  6 - BRUSSELS - ECB Governing Council meeting, followed 
by interest rate announcement 1245 GMT. News conference follows 
at 1330 GMT. 
    Nov 20 - ECB Governing Council meeting. No interest rate 
announcements scheduled. Any announcement about other issues to 
be released at 1330 GMT. 
    Dec  4 - ECB Governing Council meeting, followed by interest 
rate announcement 1245 GMT. News conference follows at 1330 GMT. 
    Dec 18 - ECB Governing Council and General Council meeting. 
No interest rate announcements scheduled. Any announcement about 
other issues to be released at 1330 GMT. 
     
    2009 
     
    Jan 15 - ECB Governing Council meeting, followed by interest 
rate announcement 1245 GMT. News conference follows at 1330 GMT. 
     
    ===================================================== 
     
    BANK OF JAPAN 
     
    2008 
     
    May 19 - MPM meeting 
    May 20 - MPM rate decision. 
    Jun 12 - MPM meeting 
    Jun 13 - MPM rate decision. 
     
    ===================================================== 
     
    BANK OF ENGLAND 
     
    2008 
     
    Jun  4 - MPC meeting (to Jun. 5). 
    Jun  5 - MPC announces interest rate decision - 1100 GMT. 
    Jul  9 - MPC meeting (to Jul. 10). 
    Jul 10 - MPC announces interest rate decision - 1100 GMT. 
    Aug  6 - MPC meeting (to Aug. 7). 
    Aug  7 - MPC announces interest rate decision - 1100 GMT. 
    Sep  3 - MPC meeting (to Sep. 4). 
    Sep  4 - MPC announces interest rate decision - 1100 GMT. 
    Oct  8 - MPC meeting (to Oct. 9). 
    Oct  9 - MPC announces interest rate decision - 1100 GMT. 
    Nov  5 - MPC meeting (to Nov. 6). 
    Nov  6 - MPC announces interest rate decision - 1200 GMT. 
    Dec  3 - MPC meeting (to Dec. 4). 
    Dec  4 - MPC announces interest rate decision - 1200 GMT. 
     
    ======================================================== 
     
    BANK OF CANADA 
     
    2008 
     
    Jun 10 - Key interest rate policy announcement 
    Jul 15 - Key interest rate policy announcement 
    Sep  3 - Key interest rate policy announcement 
    Oct 21 - Key interest rate policy announcement 
    Dec  9 - Key interest rate policy announcement 
     
    ======================================================= 
       
    BANK FOR INTERNATIONAL SETTLEMENTS (BIS)/G10 - All 
bi-monthly meetings take place in Basel, Switzerland, except 
where indicated; 
     
    2008 
     
    Jun  28 - BIS AGM 
    Sep  7/8 - Global Economy Meeting (GEM) of central bank 
heads from leading industrial and emerging economies, held at 
the Bank for International Settlements (BIS).  
    Nov 9/10 - (BRAZIL) Global Economy Meeting (GEM) of central 
bank heads from leading industrial and emerging economies, held 
at the Bank for International Settlements (BIS) 
     
    2009 
     
    Jan 11/12 - Global Economy Meeting (GEM) of central bank 
heads from leading industrial and emerging economies, held at 
the Bank for International Settlements (BIS). 
     
    ======================================================= 
     
    SWISS NATIONAL BANK 
     
    2008 
     
    Jun 19 - Quarterly monetary policy assessment 
    Sep 18 - Quarterly monetary policy assessment 
    Dec 11 - Quarterly monetary policy assessment 
     
     
    ======================================================== 
     
    RESERVE BANK OF AUSTRALIA 
     
    2008 
     
    Jun 3 - RBA Board meeting 
    Jul 1 - RBA Board meeting 
    Aug 5 - RBA Board meeting 
    Sep 2 - RBA Board meeting 
    Oct 7 - RBA Board meeting 
    Nov 4 - RBA Board meeting 
    Dec 2 - RBA Board meeting 
     
    ======================================================= 
     
    RESERVE BANK OF NEW ZEALAND 
     
    2008 
     
    Jun  5 - Monetary Policy Statement and Official Cash Ratio 
(OCR) announcement. 
    Jul 24 - Official Cash Rate (OCR) announcement. 
    Sep 11 - Monetary Policy Statement and Official Cash Ratio 
(OCR) announcement. 
    Oct 23 - Official Cash Rate (OCR) announcement. 
    Dec  4 - Monetary Policy Statement and Official Cash Ratio 
(OCR) announcement. 
     
     
    ======================================================== 
     
    SWEDEN'S RIKSBANK 
     
    2008 
     
    Jul  2 - Executive Board monetary policy meeting 
    Jul  3 - Monetary rate decision. 
    Sep  3 - Executive Board monetary policy meeting 
    Sep  4 - Monetary rate decision. 
    Oct 22 - Executive Board monetary policy meeting 
    Oct 23 - Monetary rate decision. 
    Dec 16 - Executive Board monetary policy meeting 
    Dec 17 - Monetary rate decision. 
     
    ======================================================= 
     
    NORGES BANK 
     
    2008 
     
    May 28 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1200 GMT, 
news conference 1245 GMT). 
    Jun 25 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1200 GMT, 
news conference 1245 GMT). 
    Aug 13 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1200 GMT, 
news conference 1245 GMT). 
    Sep 24 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1200 GMT, 
news conference 1245 GMT). 
    Oct 29 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1300 GMT, 
news conference 1345 GMT). 
    Dec 17 - Norwegian central bank's policy-setting executive 
board holds meeting on interest rates (rate decision 1300 GMT, 
news conference 1345 GMT). 
     
     
    ======================================================= 
     
    CENTRAL BANK OF ICELAND 
     
    2008 
     
    May 22 - Iceland Central Bank interest rate decision. 
    Sep 11 - Iceland Central Bank interest rate decision. 
    Dec 20 - Iceland Central Bank interest rate decision. 
     
    ======================================================= 
     
    DANISH NATIONAL BANK 
     
    Denmark's National Bank does not have regularly monetary 
policy meetings. The Board of Governors convenes whenever 
necessary but these meetings often coincide with the ECB. 
     
    -------------------------------------------------------- 
     
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    NOTE: The inclusion of diary items does not necessarily 
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UPDATE 2-ECB says euro zone banks toughening lending rules

Reuters: [2008-05-09 13:52:00]

(Adds detail, analyst quotes)

By Marc Jones

FRANKFURT, May 9 (Reuters) - Euro zone banks are making it harder for companies and households to borrow money as they clamp down on lending in the wake of the U.S. subprime crisis, the European Central Bank said on Friday.

The ECB's latest quarterly report on bank lending showed banks were tightening their credit standards across the board while demand for credit from firms, home-buyers and shoppers continued to wither.

"The latest quarterly survey shows a further tightening of lending standards for both the non-financial and corporate sectors (with) net tightening increasing more for large than for small and medium-sized enterprises," the ECB said.

"Banks reported that net demand for loans to enterprises was negative in the first quarter of 2008... Net demand for loans to households for house purchase also fell further."

Analysts said the report showed the toll taken by widespread worries about the euro zone's faltering economy, higher living costs and a teetering housing market.

"(It) shows a marked deterioration in corporate and household demand for loans, indicative of the shift in economic prospects and credit standards impacting on business and consumer behaviour," said BNP Paribas economist Ken Wattret.

"The survey measuring actual demand for loans has now fallen for four straight quarters (and) the measure of expected demand for loans from the corporate sector has fallen to its lowest ever level," he wrote in a note to clients.

CRUNCH TIME

Since the start of the global credit crisis last summer, banks have found it harder to obtain funds to lend on to firms and consumers.

The crux of the ongoing problem is that banks have curtailed their lending to both retail clients and each other as they try to take stock of subprime-related losses.

"Banks reported that their access to wholesale funding had deteriorated over the past three months, especially as regards securitisation activity," the ECB said.

"In addition, the percentage of banks reporting that events in financial markets are having a considerable impact on the cost related to their capital position and some impact on lending has increased over the past three months."

ECB President Jean-Claude Trichet gave a partial preview of the report at a news conference on Thursday, where he pointed out a conflict with ECB money supply data showing an acceleration in corporate lending.

"It does not fit very well with the fact that we see some of the counterparts of the monetary aggregates continuing to be extraordinarily dynamic. So we are in a universe where we see a paradox."

Trichet said this might be because firms were still able to take advantage of lending facilities agreed with banks before the credit turmoil and did not have to brave the full current turbulence -- and lending rates -- in the debt markets.

Firms were also resorting to banks for funds after being unable to raise money directly from markets, he added.

The report said banks expected to continue tightening their lending criteria next quarter, but to a lesser extent.

"Looking ahead to the second quarter of 2008, expectations point to the net tightening of credit standards (for corporate loans) being somewhat weaker," the ECB said, adding the situation was similar for lending to home buyers.

The report is based on data from 113 banks across the euro area and covers the three months up to April 8. It is the ECB's main source of information on how euro zone banks are lending and whether they expect to change their practices.

For full report on the ECB website, go to http://www.ecb.europa.eu/stats/money/lend/html/index.en.html (Additional reporting by David Milliken; editing by David Christian-Edwards) ((marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net))

Keywords: ECB/BANKS

UPDATE 1-ECB says euro zone banks toughening lending rules

Reuters: [2008-05-09 11:01:00]

(Adds detail, quotes)

FRANKFURT, May 9 (Reuters) - Euro zone banks are making it harder for companies and households to borrow money as they clamp down on lending after the crisis triggered by U.S. subprime debt, the European Central Bank said on Friday.

"The results of the April 2008 bank lending survey indicate a further increase in the net tightening of credit standards ... with net tightening increasing more for large than for small and medium-sized enterprises," the ECB said.

"Banks also reported a further increase in the net tightening of credit standards for loans to households for house purchase," the ECB added in the April edition of its quarterly bank lending survey.

Since the start of the global credit crisis last summer, banks have found it harder to obtain funds to lend on to firms and consumers, and also have become more cautious about whom they lend to -- trends which persisted in early 2008.

"Banks reported that their access to wholesale funding had deteriorated over the past three months, especially as regards securitisation activity," the ECB said

"In addition, the percentage of banks reporting that events in financial markets are having a considerable impact on the cost related to their capital position and some impact on lending has increased over the past three months," the report said.

Banks expected to continue tightening their lending criteria, but at a slower pace than before.

"Looking ahead to the second quarter of 2008, expectations point to the net tightening of credit standards (for corporate loans) being somewhat weaker," the ECB said, adding the situation was similar for lending to home buyers.

The report is based on responses from 113 banks across the euro area, with a cut-off date for responses of April 8. It is the ECB's main source of information on how euro zone banks expect to change their lending practices.

For full report on the ECB website go to http://www.ecb.europa.eu/stats/money/lend/html/index.en.html (Reporting by Marc Jones and David Milliken; Editing by Ruth Pitchford) ((marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net))

Keywords: ECB/BANKS

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