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Overnight deposits by banks at the ECB reach record euro528.2 billion
FRANKFURT, Germany (AP) ' Overnight deposits by banks at the European Central Bank have hit a record euro528.2 billion ($675.6 billion).
It's a sign of stress in the banking system. The high deposits in the ECB's safe haven indicate banks are unwilling to lend to each other because they are afraid they might not be paid back.
The Tuesday deposits were reported Wednesday. They broke the old record of euro501.9 billion from Monday.
The eurozone debt crisis is pressuring banks because they hold government bonds issued by countries with shaky finances, and could suffer losses on those bonds if the countries do not pay or the bonds fall in value.
Banks took euro489 billion in emergency loans from the ECB last month, leaving the system awash with cash.