With zero rates, deposits collapse. An immediate equation. It went into effect yesterday the yield cut decided last week laid down by the European Central Bank. As regards the overnight deposits, the Eurotower had established the total zero rates, which were previously at 0,25%.
The goal was to push credit institutions to put a good chunk of capital back into circulation (possibly in the real economy). No sooner said than done. In just 24 hours the money parked in Frankfurt by commercial banks in the Eurozone is more than halved, they go from 808,516 to 324,931 billion euros.
Also declining marginal loans (on which rates since yesterday are at 1,50%), which rose to 722 million from the previous 1,395 billion.
