Record deposits parked at European Central Bank

Europe's banks parked just over half a trillion euros at the European Central Bank on Monday in another sign that they remain concerned about lending to each other.
The central bank said Tuesday that banks stashed a record euro501.9 billion ($635.9 billion) overnight. The previous record of euro493.3 billion was set Friday.
Banks are awash with ready cash thanks to euro489 billion in low interest crisis loans handed out to 523 banks by the ECB in late December.
Many are afraid to lend the money to another bank for fear they won't get paid back. Banks face potential losses on government bonds issued by countries with heavy debt levels.
Some banks are also believed to be hoarding the ECB loan money to pay off their own bonds maturing this year.

0 komentar:

Post a Comment