The latest snapshot of the ECB's balance sheet (see Kostas' post for more detail) shows an incremental €21bn of lending for the week. This takes the total balance above €1.2 trillion of loans to Eurozone banks.
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| Lending to euro area credit institutions related to monetary policy operations denominated in euro (ECB) |
About €9bn of that increase likely came from deposits moving out of the Eurozone periphery nations to Switzerland as the euro-denominated liabilities to non-residents rose again. The rest is probably due to deposits moving from the periphery to Germany. In both cases the ECB had to step in to replace those private funding sources.
SoberLook.com
