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Author Topic: Use of both ECB overnight facilities up Wednesday  (Read 186 times)
Letsbereal
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« on: April 26, 2012, 05:24:01 PM »

Use of both ECB overnight facilities up Wednesday
26 Aprilo 2012
, by Todd Buell - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/use-of-both-ecb-overnight-facilities-up-wednesday-2012-04-26

Banks' use of both European Central Bank overnight facilities rose Wednesday versus the previous day, ECB data showed Thursday.

Banks deposited €782.34 billion in the overnight deposit facility Wednesday, versus €759.32 billion deposited Tuesday.

Banks borrowed €1.61 billion from the overnight lending facility Wednesday, well above the €214 million borrowed Tuesday.

It was the first time that the volume of overnight borrowing had exceeded €1 billion since April 17.

Overnight deposits at the ECB have been exceptionally elevated since the ECB flooded the markets with over €1 trillion in three-year loans late last year and earlier this year.

The ECB pays a 0.25% interest on the overnight deposits while it charges a punitive 1.75% interest on the emergency borrowing, compared with its benchmark rate of 1.0%.
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