Eurozone: bank deposits are rising

Eurozone banks' recourse to the ECB's deposit counter is intensifying: the total deposited rose yesterday to 128,72 billion, a new high in the last two weeks, from 107,22 billion on Friday. Deposits are remunerated at a rate of 0,75%. The loans requested by the banks at the marginal branch of the ECB, at a cost of 2,25%, amounted to 555 million, up from 90 million in the previous session. In the morning, the ECB disbursed liquidity of 133,67 billion to the banking system through the weekly refinancing auction. If we add the fact that the benchmark amount also estimated by the ECB to meet the liquidity needs of banks is negative by 107 billion, it results that the excess liquidity in the interbank system is around 240 billion which could, according to observers , end up directly in the deposit window of the ECB in the next few days. “In general – comments one operator – those banks that operate in a rational manner know their liquidity needs well and build up a 'buffer' of around 10% for each emergency. At the moment, however, this reserve is 100%”.