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The article discusses the difficulty European banks are experiencing in obtaining loans. Recently introduced restrictions on money market funds coupled with concerns stemming from a European debt crisis have made creditors wary about lending to banks. Rates banks pay for interbank loans and commercial-paper funding have both risen.

The article reports that European banks are issuing much less commercial paper to secure short-term funding and issuing fewer loans. Over a two-month period outstanding commercial paper from Banco Santander SA and Millenium BCP has declined by about $1 billion apiece. In addition, bank deposits that might otherwise be available for loans have begun piling up at the European Central Bank.