Banks' Overnight Deposits With ECB Drop to Lowest in a Month

By Gabi Thesing

Nov. 13 (Bloomberg) -- Banks' overnight deposits with the European Central Bank declined for a fourth straight day.

Banks yesterday lodged 103.3 billion euros ($128 billion) in the ECB's deposit facility, the lowest amount since Oct. 9 and down from 142.1 billion euros the previous day. Banks borrowed 4 billion euros at the marginal lending rate of 3.75 percent.

The ECB has flooded the banking system with cash and cut interest rates in an attempt to revive the frozen interbank lending market while governments have moved to bail out stricken banks. The collapse of Lehman Brothers Holdings Inc. in September shattered confidence and brought money-market lending to a standstill.

To contact the reporter on this story: Gabi Thesing in Frankfurt at gthesing@bloomberg.net