Emer­gency ECB bor­row­ing back be­low 1b eu­ros

The Pak Banker - - Company& -

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

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