ECB gives central banks power to announce emergency funding

National central banks in the euro zone will now have the power to make announcements about any emergency funding that they provide to their banks, the European Central Bank said on Wednesday.

Official announcements about the supply of Emergency Liquidity Assistance (ELA), such as in the case of Greek banks, had so far been made by the ECB itself.

“The Governing Council of the European Central Bank has decided that national central banks will from now on have the option to communicate publicly about the provision of Emergency Liquidity Assistance (ELA) to the banks in their country, in cases where they deem that such communication is necessary,” the ECB said on Wednesday.

Central banks will still have to seek ECB approval to provide ELA and to make any announcement about it.

Read more: ECB gives central banks power to announce emergency funding - The Globe and Mail