(Adds Italian and Portuguese 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 a 1% gain at 1200 GMT, 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.

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 bank Danske Bank A/S (DANSKE.KO), which also participated in December's LTRO loans, wouldn't comment on whether it made use of the latest loan round, spokesman Kenni Leth said, adding that it will announce any participation in connection with its first-quarter report later this spring.

*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.

*Banco Santander SA (STD) declined to comment.

*Bankia SA (BKIA.MC) declined to comment.

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.

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