ECB Sees €2.7 Trillion Overnight Deposits, €1.94 Trillion Public-Sector Bonds, €261 Billion Corporate Purchases

The European Central Bank (ECB) reported that banks deposited approximately €2.7 trillion with the institution overnight on August 19 and 20, 2025. On August 19, the ECB settled €1.94 trillion in public-sector bond purchases and €261.2 billion in corporate bond purchases, with bond holdings under the Pandemic Emergency Purchase Programme (PEPP) at €1.47 trillion as of the previous week. Overnight borrowing by banks from the ECB's loan facilities remained minimal, with €4 million borrowed on August 19 and €6 million on August 20 at the marginal rate. Additionally, there was a noted decline in sight deposits by $2.7 trillion, attributed to the effects of a high interest rate environment.