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Speculation on ECB borrowing spike

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Speculation on ECB borrowing spike

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Is a bank somewhere in the euro zone in trouble? That question is being asked because emergency borrowing from the European Central Bank remained exceptionally elevated for a second straight day on Friday. It has leapt from norms of around one billion euros to over 16 billion.

The ECB will not give any clues; it provides no breakdown of who is borrowing what and has declined to comment on the spike.

The last time before this week that overnight borrowing exceeded 10 billion euros was on June 24, 2009, when it was 28.7 billion euros, the highest ever. This year, emergency overnight borrowing has been above one billion euros only twice.

Italian and Spanish financial source have said the jump does not involve banks from their countries.