Banks' use of the European Central Bank's overnight lending and
borrowing facilities rose Friday from the previous day, ECB data
showed Monday.
Banks deposited 741.191 billion euros ($941.697 billion) with the ECB
Friday, up from EUR699.633 billion Thursday. Banks borrowed,
meanwhile, EUR2.979 billion Friday, up from EUR1.163 billion Thursday.
Overnight deposits with the ECB have been at elevated levels since the
central bank flooded the markets with more than EUR1 trillion via two
three-year loan operations in December and February.
Wednesday was the first day of the ECB's reserve maintenance period.
Overnight deposits at the ECB tend to be lower early in the
maintenance period as banks try to meet their reserve requirements
early within this time range.
The ECB pays a 0.25% interest rate on the overnight deposits, while it
charges a punitive 1.75% interest rate on the emergency borrowing,
compared with its benchmark rate of 1.0%.
-Write to Tom Fairless at tom.fairless@dowjones.com
(Todd Buell in Frankfurt contributed to this article.)
(END) Dow Jones Newswires
June 18, 2012 03:32 ET (07:32 GMT)
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