ECB deposits register new record

Banks’ overnight deposits with the European Central Bank hit a new record Friday in the wake of the central bank’s second three-year loan last week.

The loan has boosted the already high amount of excess liquidity in the banking system even further. Banks deposited €820.819 billion ($1.1 trillion) with the ECB, the central bank said Monday, the second record in a row after Thursday’s €776.941 billion.

The amount banks deposit overnight at the ECB has been elevated since August last year and increased sharply since the central bank offered its first-ever three-year loan to banks in December, Wall Street Journal reported.