The European Central Bank announced that financial institutions in the region increased their deposits in the Central Bank to the maximum value in July 2010. The amount of funds to European banks in the accounts of the ECB as of yesterday was 221.4 million euros. Also, the amount of borrowing from the ECB by financial institutions for yesterday was 3.2 billion euros at the marginal rate of 2.25%. The previous day the figure was much lower and amounted to 1.4 billion euros.
This suggests that banks are still unwilling to part with their money and prefer to accumulate money rather than give out loans. Despite yesterday's statement of European monetary officials, credit conditions in Europe do not improve, and banks' increasing their defensive redoubts to protect themselves. "For the European currency is a negative signal.
This suggests that banks are still unwilling to part with their money and prefer to accumulate money rather than give out loans. Despite yesterday's statement of European monetary officials, credit conditions in Europe do not improve, and banks' increasing their defensive redoubts to protect themselves. "For the European currency is a negative signal.
