Jan. 4 (Bloomberg) -- The European Central Bank said overnight deposits from financial institutions rose to an all- time high.
Euro-area banks parked 453.2 billion euros ($592.4 billion) with the Frankfurt-based ECB yesterday, up from 446 billion euros the previous day. That’s the highest since the euro’s introduction in 1999.
Last month the ECB lent 523 banks a record 489 billion euros for three years to keep credit flowing to the 17-nation euro economy as the sovereign debt crisis persists. It lent the money at its benchmark rate of 1 percent. Banks are depositing excess cash back with the ECB at the overnight rate of 0.25 percent, incurring a loss rather than lending it for more elsewhere.
Banks also borrowed 15 billion euros in emergency funds at the rate of 1.75 percent, up from 14.8 billion euros the previous day.
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