BENGALURU (Reuters) - The European Central Bank's cheap long-term loans and quantitative easing program have not been effective in boosting interbank lending in the region, a Reuters poll found on Monday.
The ECB issued its first targeted long-term refinancing operation (TLTRO) in September, after a big dip in inflation. In January, the central bank announced a trillion-euro bond-buying program that began in March and will run through to September 2016.
While the ECB hoped the deluge of cheap cash would boost bank lending, a majority of traders - 13 of 23 - said it hasn't.
The overnight lending volume has been trending downward, according to the ECB website.
In September 2014, the volume lent ranged between 25 to 30 billion euros on a daily basis. Recently, however, it has been struggling to hit 20 billion euros.
"There is absolutely no evidence of any improvement in interbank lending. Banks still do not trust each other in the euro zone and with some member countries still in trouble, it is far from over," said one trader at a large dealer.
The poll also found the ECB will lend banks 90 billion euros at its weekly operation, slightly less than the 92.52 billion euros maturing from last week.
Reporting by Aaradhana Ramesh; Polling by Siddharth Iyer; Editing by Janet Lawrence