Live Updates > Live Update Details
2025-12-18 18:32:54
[Liquidity Tsunami: ECB Deposits Surge, Banking System Overwhelmed by Excess Liquidity] ⑴ Daily liquidity data released by the European Central Bank (ECB) on Thursday showed that financial institutions borrowed only €5 million through their overnight lending facility. ⑵ Meanwhile, the amount deposited in the ECB's overnight deposit facility reached a staggering €247,908.9 billion, a further increase from the previous day's €246,524 billion. ⑶ In addition, financial institutions held €17,577.3 billion in their current accounts at the central bank. ⑷ The combined massive holdings in the overnight deposit facility and current accounts far exceed the negligible demand for overnight loans, clearly reflecting that the Eurozone banking system is being overwhelmed by excess liquidity. ⑸ This structural liquidity glut continues to depress short-term market interest rates, highlighting the long-term challenges the ECB faces in withdrawing excess liquidity from the financial system.
