Emergency ECB borrowing back below 1b euros
FRANKFURT: Emergency overnight borrowing from the European Central Bank fell back below 1 billion euros, figures showed on Monday, as eurozone debt market conditions continued to dominate the mood in financial markets.
The amount deposited by banks overnight also rose to 85 billion euros as the end of the ECB's latest reserves maintenance period approached.
Banks usually refrain from using the ECB's overnight borrowing facility because the interest rate is 0.75 percent higher than the 1 percent that cash is on offer at its main refinancing operation. It is typically well above market rates. Market overnight interest rates EONIA= fixed at 0.414 percent on Friday. -PB News