Germany's biggest bank, Deutsche Bank, took €5-€10 billion from the European Central Bank, a source said today, after chief executive Josef Ackermann signalled last month the bank may take advantage of cheap loans.

The bank tapped the ECB's long-term refinancing operation - aimed at propping up Europe's banking system - as a means of pumping cash into their operations in Italy and Spain, said the source, who has direct knowledge of the matter.

Deutsche Bank declined to comment. In early February, Mr Ackermann said Deutsche had not taken part in an earlier ECB tender but signalled the lender could take advantage of future offers for cheap cash if it was economically sensible to do so.

Germany's second biggest lender Commerzbank took a single digit billion euros amount, a source close to that bank said today.

Commerzbank declined to comment.

The move marks a more pragmatic approach toward receiving cheap cash from the European Central Bank, mirroring a change of attitude by rival Barclays which had initially said it would not take the money to avoid the stigma of needing cash.

Tapping the central bank for loans is currently cheaper than refinancing on commercial markets, and helps to avoid a mismatch between loans and deposits at operations in countries hit by an economic slowdown.

A total of 800 banks borrowed money in the ECB's latest liquidity operation, fuelling expectations that credit will flow to businesses and borrowing costs will ease for governments hit by the euro zone crisis.

In the first long-term refinancing operation Commerzbank's mortgage unit Eurohypo took roughly €10 billion, a separate source said last month.