ECB Allots EUR201.149B At Main Refi Operation At Fixed 1.50%

Demand for the unlimited short-term credit of the European Central Bank rose significantly this week, ECB data showed Tuesday.


The ECB said it allotted EUR201.149 billion in seven-day funds at its weekly main refinancing operation at a fixed rate of 1.50%, up from EUR163.768 billion at last week's tender.

The allotment is the highest at a main refinancing operation since February, when the ECB allotted EUR213.725 billion.

The number of bidders at the weekly operation rose to 153 from 142 a week earlier.

The allocated amount was above the ECB's benchmark allotment of -EUR14.5 billion, or the ECB's estimate of liquidity banks need to conduct routine operations. The negative benchmark allotment means that banks have more liquidity than they need.

Despite the excess liquidity banks remain nervous about lending to other banks, amid concerns about the euro zone debt crisis. This has resulted in banks parking loads of funds at the ECB's overnight deposit facility in recent weeks.