European banks park €2 trillion in ECB overnight deposits

The figure highlights how much liquidity remains at the European Central Bank instead of being deployed into lending or broader economic activity.

Summary

European banks have placed €2 trillion in overnight deposits at the ECB (European Central Bank), underscoring the scale of cash being held at the central bank rather than circulating through the wider economy. Overnight deposits are short-term balances banks keep parked with the ECB, typically reflecting excess liquidity, cautious risk appetite, or limited incentives to extend credit. The figure points to a large pool of capital sitting idle instead of flowing into lending, investment, or other economic uses.

Terms & Concepts
  • ECB overnight deposits: Short-term cash banks hold at the European Central Bank.
  • liquidity: Readily available cash for payments or lending.