Spanish banks showed a strong appetite for Bank of Spain bond issues designed to rejuvenate lending in the nation. They bought 16 billion euros, which was nearly 20% of the 82.6 billion that euro zone banks bought collectively.
However, they bought less than experts expected. While some Spanish banks are sitting on piles of cash, they are reserving money to buy more debt in December. The main reason is that the demand for loans is not strong right now, and growth expectations are not particularly strong for the near-term. This is the problem with channeling all loans through the banks and the reason that Draghi's plans are not going to get the euro zone out of its economic rut.
