A member of the European Central Bank's executive board clarified that the European Central bank must exit the provided 3-year loans and return to a less accommodative policy stance once the economic conditions improve and become suitable in the euro-area region.

In any case, we can withdraw the ample liquidity created as a side effect of the long-term operation whenever the Governing Council deems [that] liquidity conditions are excessive in view of the outlook for price stability, Coeure said.

All the tools necessary for large-scale liquidity withdrawal are already in place or will be readily available when needed, Coeure added.

The European Central Bank provided European banks with cheap funds twice in December and in February, the thing that relieved markets are prevented a credit crunch from hurting the financial sector in general and the banking sector specifically, noting that the bank provided banks with around one trillion euros.

The ECB's offer of cheap funds attracted in the second time large number of small banks, which could boost lending to small and medium-size business, and in result might spur growth and support job creation, according to Benoit Coeure, an ECB executive.

Fully accommodating the overall higher liquidity needs of banks and alleviating bank funding stress is, therefore, essential to support the wider economy, Coeure said in a speech in at a conference in Tokyo.