Heightened event risk as ECB excess liquidity shrinks

ecb-frankfurt

A rise in the forward euro overnight indexed average (Eonia) rate is reflecting fears banks might look to front-load reserves at the beginning of the European Central Bank's (ECB) new monthly maintenance period on July 14.

Excess liquidity in the market has been cut in half following the expiry of the ECB's 12-month longer-term refinancing operation (LTRO) on July 1. A research note from Société Générale dated July 2 estimated €167.7 billion of excess liquidity had evaporated after the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here