ECB says Eurozone banking woes easing

City A.M. Reporter
The European Central Bank's flood of cheap three-year money is helping the Eurozone's banking system substantially and supporting confidence in the bloc's economy which is showing some signs of stabilisation, its president said.

The ECB left interest rates on hold, pausing to assess the impact of back-to-back cuts and a slew of other measures it unleashed late last year that are showing signs of helping fight the euro zone debt crisis.

"The extensive recourse to the first three year refinancing operation indicates that our non-standard policy measures are providing a substantial contribution to improving the funding situation of the banks, thereby supporting financing conditions and confidence," ECB President Mario Draghi told a news conference after it held its benchmark rate at one per cent.