Babies squeal when nanny tries to wean them off a comfort blanket. The European Central Bank – in spite of stern resolve not to lower interest rates to help the troubled banking system – had been generous in providing succour through its lending operations. It has now tweaked the rules governing what collateral it will accept from banks seeking funds. Cue the screaming. Bank stocks fell and share prices from UBS to Banco Popular were off about 5 per cent.

The ECB’s move, however, is a gradual one – a hint perhaps that, one year into the crisis, banks need to think about proper funding arrangements. From February the bank will lend only 88 cents against each euro worth of asset-backed securities deposited, instead of the sliding scale where the bank accepted most ABSs at 98 cents. This is hardly tough love, but the central bank is determined not to be taken for a ride. There is also an additional penalty on lodging collateral with a theoretical, rather than market-based, valuation.