The European Central Bank has injected an additional €529.5bn into the eurozone financial system, taking the total supplied to banks under the three-year loan programme beyond €1tn.

Some 800 banks took advantage of the second phase of the scheme, with the February take-up edging ahead of demand in the debut December operation when 523 banks borrowed €489bn. Broader collateral rules drew in smaller banks, with more than half of the 800 institutions that borrowed money accounted for by German lenders, according to people familiar with the auction.

The ECB’s injection of liquidity into the European banking system has been widely viewed as a “game changer”. The move has boosted investor sentiment and lifted markets, enabling banks to make a flurry of bond issues at the start of the year.