(Adds further Spanish, U.K., Belgian, Nordic and German banks.)

THE EVENT: The European Central Bank released the results Wednesday of the second round of its long-term refinancing operation. A total of 800 banks participated, and the ECB allotted EUR529.53 billion in the three-year refinancing operation.

The ECB loaned EUR489 billion in December in the first three-year LTRO at an interest rate of 1% to 523 banks.

The aim is to avert problems at banks that face maturing debt but don't have access to funding through traditional funding markets. It also was hoped that healthier banks would increase lending to the real economy with the additional funds.

Several banks acknowledged their participation in the second round, as the "stigma" from borrowing the cheap funds continues to fade, but most declined to disclose the amount.

INVESTOR REACTION: Bank shares throughout Europe initially rose on the announcement. The STOXX 600 banking index, which had been up about 1.2%, quickly rose to a 2% gain. However, it fell back to close with a gain of about 0.5%, as investors struggled to interpret the meaning of the total borrowing.

Here are some highlights of bank comments following Wednesday's announcement of the ECB's second LTRO.

AUSTRIA:

*Erste Group Bank AG (EBS.VI) said it would take EUR1.1 billion to ensure financing flexibility.

BELGIUM:

*Dexia SA (DEXB.BT) said it took part, but didn't disclose amount.

*KBC Group NV (KBC.BT) took EUR5 billion. KBC had to be bailed out with a EUR7 billion cash infusion from Belgium's government and the regional Flemish government, and is in the process of repaying the state aid, which has involved selling off non-core assets.

GERMANY:

*Aareal Bank AG (ARL.XE) said it drew EUR1 billion. It said it made the move to keep financing flexibility and that it hadn't decided yet how to use the allocation.

IRELAND:

*Bank Of Ireland PLC (BIR.DB) likely participated, according to a person familiar with its operations. Bank of Ireland, which was the only Irish lender to remain out of government control during the country's banking crisis, participated in the previous LTRO program in December.

*Allied Irish Banks PLC (ALBK.DB)--now effectively nationalized--also planned to participate in the LTRO program, a person familiar with the matter said.

ITALY:

*Intesa Sanpaolo SpA (ISP.MI) took EUR24 billion, its CEO said.

*UBI Banca SpA (UBI.MI) took up about EUR6 billion, a person familiar with the matter said.

NETHERLANDS:

*ING Bank NV said it didn't participate.

*SNS Reaal NV (SR.AE) says it did participate but didn't reveal the amount. It borrowed EUR1.5 billion in the December LTRO.

NORDIC:

*DNB ASA (DNB.OS) said it borrowed EUR1 billion. DNB doesn't have any need to fund itself through the ECB, but it made use of the loan because it was given at favorable terms against securities that DNB wouldn't otherwise be able to use, a spokesman said. It took EUR2 billion in the December round, and said it was unlikely to participate in any future rounds.

*Danish lender Danske Bank A/S (DANSKE.KO) borrowed EUR4 billion, a company spokesman said. In the ECB's earlier LTRO round in December, Danske borrowed EUR1.5 billion, he said.

*Nordea Bank AB (NDA.SK), Svenska Handelsbanken AB (SHB-B.SK), Swedbank AB (SWED-A.SK) and SEB AB (SEB-A.SK) previously stated that they wouldn't participate.

PORTUGAL:

*Banco BPI SA (BPI.LB) participated, people familiar said.

*Banco Espirito Santo SA (BES.LB) had indicated it would participate, although the amount wasn't known. Borrowed about EUR5 billion in first round.

*Banco Comercial Portugues SA (BCP.LB) had indicated it would participate, although the amount wasn't known. Borrowed about EUR5 billion in first round.

SPAIN:

*CaixaBank SA (CABK.MC) said it participated, but said it didn't plan to comment on the amount.

*Banco Bilbao Vizcaya Argentaria SA (BBVA) said it took a "similar" amount as in the first LTRO, when it took about EUR11 billion.

*Banca Civica SA (BCIV.MC) took EUR6.1 billion, more than the EUR3.7 billion it had borrowed in the first tender in December, CFO Roberto Rey said.

UK:

*HSBC Holdings PLC (HBC) confirmed it borrowed about EUR350 million from the second LTRO. It also took part in the first LTRO, borrowing $5.2 billion.

*Lloyds Banking Group PLC (LYG) ) said it took part in the LTRO drawing GBP11.4 billion. "The aim is to part fund a pool of non-core euro denominated assets," A spokeswoman said.

*Standard Chartered PLC (STAN.LN) said has stayed away from the cheap loans being offered by the ECB. CEO Peter Sands said that the bank would "never" access this kind of funding, despite an interest rate of just 1%. "Accessing the cash "didn't make sense" for his bank, he added.

BANKER COMMENT: The LTRO supports the banking sector and helps stem the crisis, two large German bank lobby groups said. However, the measures can't be seen as a substitute for a fully functioning interbank market, nor can it solve the euro area's sovereign debt crisis, said the BdB, which represents commercial banks such as Deutsche Bank AG (DB) and Commerzbank AG (CBK.XE). The BVR, which represents German cooperative banks, said progress on reforming the euro area's governing rules and fiscal policies will be crucial for a sustained strengthening of trust in the region.

ANALYST COMMENT:

*A trader said it was unlikely that LTRO liquidity will be converted into customer lending, with banks more likely using the funds to cover maturing debt or inflate capital ratios.

*Economist Martin van Vliet at ING Bank interpreted the data as a "Goldilocks" outcome -- not overly large as to generate concern about the fragility of the European banking system, but high nevertheless.

*Caxton FX said in a note that "on the one hand, the large take-up suggests that liquidity will continue to improve and that euro-zone institutions will be more robust moving forward. However, some might take it as a clear indication of ongoing instability...What is important now is that European banks use these funds to lend to individuals and businesses to stimulate economic growth, rather than just buying up government bonds."

*A Milan-based asset manager said: "The result was better than expected and the positive news is that a higher number of banks participated, compared to the first round." The asset manager added that some Italian banks may have not been ready for the first LTRO and joined the second.

*"The ECB's two long-term liquidity injections do not solve the underlying solvency problems in the euro area but they could push the crisis back into remission for a while if they give economic growth a boost," said Trevor Greetham, director of asset allocation at Fidelity Worldwide Investment.

-By Dow Jones Newswires

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