The European Central Bank is readying measures to encourage more lending to companies in Europe's stagnant economy.

Tight credit is currently holding back the economies of eurozone countries such as Spain and Italy. The ECB has set its interest rate benchmark at a record low of 0.5 percent, but shaky banks are not passing those low rates on.

The ECB said Thursday it will accept lower-rated asset-backed securities as collateral for the loans it gives to banks. That would give banks a motive to create more such securities, which can be a way for companies to tap new sources of credit.

Banks can have loans packaged into securities and sell them, freeing money for more loans and getting cash from investors who wouldn't normally loan directly to companies.