Wall Street Journal
December 28, 2011
Use of the European Central Bank's overnight deposit facility hit the second all-time high in a row Tuesday as euro area banks increased the amount of cash they park at the central bank's safe haven, ECB data showed Wednesday.
Banks parked €452.034 billion ($589.72 billion) at the ECB, up from €411.813 billion the previous day. The high level reflects prevailing distrust among banks which prefer using the ECB's facility rather than lending to each other.
The increase in deposits follows the ECB's first-ever three-year liquidity tender last week in which it allocated nearly half a trillion euros to more than 500 banks.