ECB's Mersch says sees revival of money markets - media
WARSAW (Reuters) - There is a revival in the euro zone money market, but levels of liquidity have still not returned to where they were before the global financial crisis, European Central Bank Executive Board member Yves Mersch said.
"What we see now is (a) renewed revival of (the) money market, maybe we are not yet back at the level of liquidity that we have seen before the crisis, but we are at levels of liquidity which are safer," Mersch told website obserwatorfinansowy.pl in an interview that was published on Thursday.
He added that as a consequence of new regulation there would be changes among the participants in the market and its instruments.
Mersch added that it is important to restore bank lending.
"During the phase of recovery it is particularly important to restore the bank lending channel and to some extent this is part of it," Mersch said.
"But we can also help this restoration of the bank lending channel. And this is exactly what we intend to do with our announced targeted long term refinancing operations."
(Reporting by Marcin Goettig; Editing by Catherine Evans)
