ECB survey shows widespread easing in securities funding terms

FRANKFURT (Reuters) - There was a widespread easing in financing terms for euro-dominated securities in the three months to the end of February, a European Central Bank survey on credit terms and conditions in the sector showed on Thursday.

The ECB and euro zone central banks surveyed 28 large banks, comprising 13 euro area banks and 15 banks with head offices outside the euro area, between December 2013 and February 2014 on changes in credit terms and conditions.

"Across the entire range of securities financing and OTC derivatives transactions, offered price terms (such as financing rates/spreads) have eased, on balance, for nearly all types of counterparty covered in the survey," the ECB said.

Survey respondents cited changes in general market liquidity and functioning as being behind the easing in credit terms, as well as increased competition and an increased willingness to take on risk.

"Respondents to the March 2014 survey, on balance, expect the easing of credit terms to continue over the next three-month reference period from March 2014 to June 2014," it added.

(Writing by Paul Carrel)