Bloomberg News

ECB Says Overnight Deposits Decline at End of Reserve Period

October 12, 2011

Oct. 12 (Bloomberg) -- The European Central Bank said overnight deposits dropped to the lowest in two months.

Euro-region banks parked 62.2 billion euros ($84.9 billion) at the ECB on the last day of the maintenance period, down from 269.2 billion euros the previous day. That’s the lowest level since Aug. 10. The ECB yesterday absorbed 273.8 billion euros in a fine-tuning tender to counter a “large positive liquidity imbalance.”

Banks need to hold a certain amount of reserves on average during an ECB maintenance period. This results in fluctuations at the end of the period as lenders seek to balance their accounts.

Financial institutions borrowed 4.2 billion euros at the marginal rate of 2.25 percent, up from 2.9 billion euros.

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To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net


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