FRANKFURT, Oct 8 (Reuters) - Banks increased their use of the European Central Bank's overnight borrowing and deposit facilities, figures showed on Wednesday.
Banks borrowed 18.174 billion euros overnight as of Oct. 7, up from 13.56 billion the previous day, the ECB said.
Banks also deposited 49.524 billion euros, up from the previous level of 42.55 billion euros.
(For full details click on Reuters information page)
The amounts passing through the facilities remain high. The problems in money markets are forcing banks to turn to central banks for funds as normal interbank lending markets remain virtually frozen.
Banks normally try to avoid using the ECB's permanent overnight lending and borrowing facilities because the 5.25 percent borrowing rate and 3.25 percent deposit rate are punitive compared with the rates usually available on interbank markets.
(Reporting by Marc Jones; editing by David Stamp)
marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net))
Keywords: ECB/MARGINAL
tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Banks borrowed 18.174 billion euros overnight as of Oct. 7, up from 13.56 billion the previous day, the ECB said.
Banks also deposited 49.524 billion euros, up from the previous level of 42.55 billion euros.
(For full details click on Reuters information page)
The amounts passing through the facilities remain high. The problems in money markets are forcing banks to turn to central banks for funds as normal interbank lending markets remain virtually frozen.
Banks normally try to avoid using the ECB's permanent overnight lending and borrowing facilities because the 5.25 percent borrowing rate and 3.25 percent deposit rate are punitive compared with the rates usually available on interbank markets.
(Reporting by Marc Jones; editing by David Stamp)
marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net))
Keywords: ECB/MARGINAL
tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
