Mar
07
Rising European Bank Deposits Wind Up at ECB as Lending Sputters
By-
Negative interest rates have barely boosted borrowing
-
Banks paid ECB $3.8 billion in interest on deposits last year
Banks in the euro zone, flush with new deposits, have turned few of them into loans to companies and consumers. Instead they’ve parked most of the money at the European Central Bank, where they’re paying billions of euros for the privilege of keeping it there.
Since June 2014, when the ECB cut rates below zero, deposits at euro-zone banks have jumped by 802 billion euros ($848 billion), according to central bank data through the end of January. Lending to nonfinancial companies and consumers in the currency area rose by 169 billion euros over the same period, while deposits at the ECB in excess of required reserves soared by 1.1 trillion euros…
Rising European Bank Deposits Wind Up at ECB as Lending Sputters
