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Banks place more cash overnight with ECB

Banks placed €255 billion overnight on Friday
Banks placed €255 billion overnight on Friday

Banks are parking more money overnight with the European Central Bank in a sign the euro zone debt crisis is unsettling the banking system.

Banks deposited €255.6 billion overnight on Friday, the highest this year. That surpassed the previous year high of €229 billion.

The deposits suggest banks would rather stash money with the ECB than lend it to each other.

Banks are afraid that other banks could suffer losses on Greek and other government bonds in case of a default. That makes them concerned they might not be paid back.