Banks Park Record 452 Bln Euros Overnight At ECB
Written By William L. Watts
Published December 28, 2011
MarketWatch Pulse
FRANKFURT – Banks parked 452.03 billion euros ($590.4 billion) in the European Central Bank's overnight deposit facility, ECB data showed on Wednesday. The figure topped the previous record of 411.8 billion euros set on Tuesday. Heavy use of the deposit facility is seen as a sign of stress in the banking system, reflecting reluctance by banks to lend to each other. Deposits earn interest at a rate of 0.25%, below the rate earned in the interbank market. The ECB last week provided a total of 489 billion euros in three-year loans to more than 500 banks at a fixed rate of 1% in an effort to avoid a liquidity crunch in the euro zone.
Copyright © 2011 MarketWatch, Inc.
Read more: http://www.foxbusiness.com/markets/2011/12/28/banks-park-record-452-bln-euros-overnight-at-ecb/#ixzz1hvmYeyrh
Written By William L. Watts
Published December 28, 2011
MarketWatch Pulse
FRANKFURT – Banks parked 452.03 billion euros ($590.4 billion) in the European Central Bank's overnight deposit facility, ECB data showed on Wednesday. The figure topped the previous record of 411.8 billion euros set on Tuesday. Heavy use of the deposit facility is seen as a sign of stress in the banking system, reflecting reluctance by banks to lend to each other. Deposits earn interest at a rate of 0.25%, below the rate earned in the interbank market. The ECB last week provided a total of 489 billion euros in three-year loans to more than 500 banks at a fixed rate of 1% in an effort to avoid a liquidity crunch in the euro zone.
Copyright © 2011 MarketWatch, Inc.
Read more: http://www.foxbusiness.com/markets/2011/12/28/banks-park-record-452-bln-euros-overnight-at-ecb/#ixzz1hvmYeyrh