The European Central Bank has announced its biggest ever liquidity operation, worth almost half a trillion euros, to shore up confidence in the eurozone and its cash-starved banks.It made 489 billion euros (£409bn) of emergency funding available to 523 banks who requested it.
The eurozone banks involved have not been identified.
The three year loans are ultra-cheap and designed to help banks who are struggling to borrow money on the open market.
Demand far exceeded analysts' expectations.
In London, the move boosted investor sentiment towards the wider sector with Royal Bank of Scotland, Lloyds Banking Group and Barclays all climbing to the top of the gains list on the FTSE 100 Index.
But the key question arising from the demand is was the take-up a sign of banks in distress - or an opportunity to borrow cheap money that was too good to turn down?
Martin van Vliet, analyst at ING Bank, said doubts remain over whether the money will be used to support weaker eurozone economies. Read More
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