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2026-04-07 17:27:11
[Zero Borrowing, Trillions in Dormant Liquidity: European Banks Prefer to Pay Out of Their Own Money Rather Than Spend] ⑴ Data released by the European Central Bank on Tuesday showed that financial institutions borrowed nothing through their overnight lending facility, unchanged from the previous trading day. ⑵ Meanwhile, overnight deposit facility usage reached €23,294.5 million, a further increase from €23,206.52 million the previous trading day. ⑶ Current account holdings stood at €1,755.09 million, lower than €1,803.95 million the previous trading day. ⑷ This data indicates that despite the uncertainty brought about by the Iran war and inflationary pressures, the Eurozone banking system still holds a large amount of excess liquidity. Institutions prefer to deposit funds with the European Central Bank at negative interest rates rather than actively lend them out or invest in risky assets.
