Bloomberg News

ECB Says Banks’ Overnight Borrowing Increased to 8-Month High

November 09, 2011

Nov. 9 (Bloomberg) -- The European Central Bank said euro- area financial institutions’ emergency overnight borrowing jumped to an eight-month high.

Banks tapped the Frankfurt-based ECB for 7.7 billion euros ($10.6 billion) yesterday, up from 1.2 billion euros the day before and the most since March 1. Overnight deposits with the ECB fell to 73 billion euros from 298.6 billion euros a day earlier, the ECB said.

Yesterday was the last day of the ECB’s reserve maintenance period, during which banks are required to hold a certain amount of reserves on average. This results in fluctuations at the end of the period as lenders seek to balance their accounts.

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To contact the reporter on this story: Matthew Brockett in Frankfurt at mbrockett1@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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