Banks deposited record €493.3B into European Central Bank on night of Jan. 13, signalling eurozone banks' continuing concern over continent's debt crisis
January 16, 2012
– Banks deposited a record euro493.3 billion ($630 billion) at the European Central Bank on Friday night in a sign the eurozone banks remain concerned over a government debt crisis.
The overnight figures released Monday exceed the previous record of euro490 billion deposited on Thursday.
Banks are awash with ready cash thanks to euro489 billion in low interest crisis loans handed out to 523 banks by the ECB in late December.
But many are afraid to lend the money to another bank for fear they won't get paid back. Banks face potential losses on government bonds issued by countries with heavy debt levels.
Some banks are also believed to be hoarding the ECB loan money to pay off their own bonds maturing this year because they can't issue new bonds.
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