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2026-02-26 18:31:40
[ECB Liquidity Data Released: Overnight Deposits Still Exceed €2.4 Trillion] ⑴ The latest liquidity data released by the European Central Bank (ECB) on Thursday showed that Eurozone financial institutions used €30 million of the central bank's marginal lending facility that day, an increase from €7 million the previous day. ⑵ Meanwhile, overnight deposits held by financial institutions at the central bank remained at a historically high level, reaching €240,930.8 billion, a slight decrease from €243,829.5 billion the previous day, but still above €2.4 trillion. ⑶ Current account holdings were €168.227 billion, basically unchanged from €167.772 billion the previous day. This data reflects that despite the ECB's continued tightening of monetary policy, liquidity within the banking system remains ample, and financial institutions prefer to deposit excess funds back to the central bank to obtain risk-free returns rather than invest in credit to the real economy. ⑷ Judging from the slight increase in marginal lending usage but the fact that the absolute value remains low, there are no significant signs of liquidity tightness in the Eurozone interbank market. Overall, the current data paints a picture of excess liquidity but low activation of funds, which explains why credit growth has been slow to recover.
