ECB lends banks more than forecast

The ECB awarded €489 bn ($645 bn) in three-year loans, compared to previous expected estimate of €293 bn. In total 523 Euro Zone banks called for cash which will be provided at a cost equal current benchmark 1%. European debt turmoil has amplified risk of bank and government defaults, therefore financials became more reluctant to lend driving up borrowing costs. By providing cheap cash, ECB expects banks to expand lending.