ECB overnight deposits plunge

The European Central Bank said overnight deposits of financial institutions dropped to the lowest level in almost seven months…

The European Central Bank said overnight deposits of financial institutions dropped to the lowest level in almost seven months.

Banks in the 17-nation euro region deposited €324.9 billion at the ECB last night, down from €808.5 billion the previous day, the least since December 21, the Frankfurt-based institution said.

Financial institutions are no longer remunerated for the funds they deposit at the ECB overnight after last week's interest-rate cuts took effect yesterday.

Policy makers on July 5 reduced the main refinancing rate to a record low of 0.75 per cent and cut the deposit rate to zero to stimulate credit supply and lending.

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Bloomberg