ECB trims discount applied to Greek banks' collateral

The European Central Bank (ECB) has reportedly reduced the discount it applies to the bonds Greek banks submit as collateral to borrow funds.

A Greek central bank official told Reuters the new smaller valuation discount meant that an additional €12bn of liquidity could now be accessed by the country's lenders.

"The move was decided late on Wednesday evening after talks between the government, the ECB and Greece's central bank governor," the official said.

In a research note released early on Thursday morning analysts at Credit Suisse told clients that catalysts for Greek banks in the short-term were mostly negative, given the short-term headwinds associated with the ECB's upcoming asset quality review (AQR) and the uncertainties surrounding the presidential elections in 2015.