European Central Bank chief Mario Draghi has dismissed market disappointment about demand from banks for a new lending program launched last week, saying it had been within the expected range.
Addressing the European Parliament in Brussels on Monday, the central banker said the Targeted Long-Term Refinancing Operation (TLTRO) to pump more liquidity into the financial system was on track but needed time to take full effect.
The Frankfurt-based central bank reported on Thursday it had leant 82.6 billion euros ($A114.7 billion) to 255 banks as it began the program, designed to boost the economy by encouraging private-sector loans.
"This is within the range of take-up values we had expected based on banks' revealed behaviour under previous programs," Draghi said.
The amount borrowed by eurozone banks came in below forecasts by analysts who had pencilled in an uptake of at least 100 billion euros for the TLTRO.
Draghi noted that in December banks would have another opportunity to borrow funds under the program.
This will entitle them to borrow an amount "equivalent to up to seven per cent of their outstanding stock of loans to the non-financial private sector", excluding loans for house buying.
"The September and December operations should be assessed in combination," Draghi said.
The second round of lending is scheduled for December 11.
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