Featured statistic: EUR 40.7 billion

News
Date 2 December 2008

De Nederlandsche Bank (DNB) offers banks a facility to place funds, on their own initiative, on a special DNB deposit account. While for a long time this deposit facility was barely used by banks, a turning point was seen at the end of September. As at 28 November, banks’ deposits at DNB amounted to EUR 40.7 billion.

Moneys from banks on deposit accounts with DNB

 

 

 

 

 

 

 

 

 

 

The credit crisis has made banks uncertain about the risks they run on loans to other banks. After the collapse of the US bank Lehman Brothers, the interbank money market deteriorated to the point that, on 8 October, the ECB decided to extend unlimited loans to banks on a weekly basis or for a longer period, on condition that they could pledge the requisite collateral.

Rather than lending it to other banks, in the present nervous market banks tend to place excess liquidity with the national central banks under the deposit facility. So far, DNB recorded a peak in this trend on 24 October, when banks deposited nearly EUR 59 billion under this facility.