Source: Arbor Research
Banks in the EU seem to be going to their central banks a lot more frequently then they used to:
“Euro-zone banks’ overnight deposits with the European Central Bank hit yet another fresh 2011 high Friday ahead of a week that many observers regard as key to solving the euro zone’s sovereign-debt crisis. Banks deposited €332.705 billion ($445.49 billion) with the ECB, the ECB said Monday, hitting a 2011 record for the third day in a row. The deposits were up from €313.763 billion Thursday, hitting a level last seen in June 2010 while edging closer to the all-time high.
When markets are functioning properly, banks deposit a few hundred million euros at the ECB overnight. With the deepening of the euro-zone debt crisis, banks have become reluctant to lend to one another and place their funds with the ECB instead, in the fear that their counterparty may be exposed to week euro-zone sovereign debt.
It is amazing how fragile trust can be . . .
ECB Deposits Hit New High
Wall Street Journal, DECEMBER 5, 2011
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.