Financial Times FT.com

Demand for ECB liquidity at six-year low

By Ralph Atkins in Frankfurt

Published: October 20 2009 18:32 | Last updated: October 20 2009 18:32

The European Central Bank on Tuesday pumped the smallest amount of liquidity into the banking system in a regular weekly operation for more than six years, a sign that its emergency actions to combat the crisis are closer to having outlived their usefulness.

The slump in demand highlighted how the eurozone financial system has become saturated with liquidity, which could encourage the ECB to start unwinding the steps taken after last year’s collapse of Lehman Brothers.

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