A total of 640 banks requested 223.7 billion euros at the ECB's benchmark lending rate of 2.50 per cent, a statement said.

The funds, which are available from Tuesday, serve to maintain minimum reserves which underpin lending to the wider economy.

ECB staff had estimated that eurzone banks needed a negative 111.5 billion euros, or that there was a strong surplus of cash in money markets at present.

But all bids were nonetheless satisfied in what has become the central bank's current policy of providing unlimited funds so banks do not hoard the cash.

The end of year period is a peak crunch point for commercial banks, which seek to ensure they have ample liquidity to make it though the holidays.

Despite that measure, and three interest rate cuts running to a total of 1.75 percentage points, ECB directors say commercial banks continue to restrict interbank lending, and by extension the amount of credit available to businesses.

In another sign of stress on the interbank market, banks parked a total of 230.7 billion euros at the ECB's one-day deposit facility on Sunday at the current benchmark rate of 2.00 per cent, the central bank said, or for less than the prevailing market rate of 2.05 per cent.

That underscored that commercial banks still preferred to deposit funds with the ECB than to lend to each other. -- AFP