Gods boom overnight deposits of European banks with the ECB. Last night a new all-time high was reached: 776,941 billion euros, against 475,219 billion on Wednesday evening.
This increase certainly is linked to the refinancing auction with which almost 530 billion of funds were disbursed to the banks, a record, at subsidized rates of 1% for three years.
Although the placement with the ECB does not offer particularly high returns, the rate is 0,25%, these very short-term solutions could be, in addition to a symptom of mutual distrust between banks, also a way for institutions to take time before deciding how to use this new liquidity.
