European banking share prices soared on the back of Mario Draghi's big reveal this afternoon, with the likes of Deutsche Bank, UniCredit and Societe Generale leading the pack.
The European Central Bank president cut its deposit rate to minus 0.4 per cent, from minus 0.5 per cent, as well as expanding its quantitative easing programme by €20bn to €80bn a month, saying it will run beyond the end of March 2017 "if necessary".
He also revealed four targeted longer-term refinancing operations (TLTROII), each with a maturity of four years, to get banks lending more.
"For banks whose net lending exceeds a benchmark, the rate of TLTRO II can be as low as the interest rate on the deposit facility," Draghi said.
"We expect a very sizeable take-up of the second TLTRO given the recovery and the very attractive conditions".
Those who were "very active in lending to the real economy" would be able to borrow more than "banks active in other ways", he said.
Equities bounced on the news, with European bank stocks particularly benefiting from the announcement.
By mid-afternoon trading, Deutsche Bank's share price was up 6.8 per cent, having spent much of the day in the red, while Soc Gen climbed as much as 9.8 per cent. UniCredit's share price was up 8.1 per cent.
BNP Paribas also soared, up 4.7 per cent, while Credit Agricole climbed 3.7 per cent. Banco Santander rose 5.5 per cent.
Venerable – but struggling – Italian lender Banco de Sabadell's share price was up seven per cent.