The Central Bank, located in Frankfurt, Germany, said its goal is to reduce the cost of lending between retail and commercial banks, which has climbed during the past several weeks, the BBC reported. Banking officials said they also hope the move, which makes the extra funds available during the next two weeks, will help allay fears of a credit meltdown during the Christmas period when banks need more cash on hand.

Central banks around the world have been working to boost the banking sector's liquidity to ensure the financial institutions keep providing credit to businesses.

The U.S. Federal Reserve made $20 billion available through auction Monday, although the Fed did not say how many banks sought the extra money. Other banks either planning to or already offering extra funds include the Bank of England and the national banks of Canada and Switzerland, the BBC said.