ECB released its weekly statement today which is quite interesting (and a bit alarming).

Asset side

A drop of €25.3bn in monetary operations (€5,1bn in MRO and €21.4bn in LTRO). Since no LTRO matured last week i think that it can only mean that some bank(s) (or collateral class) became non eligible.

An increase of €34.1bn in other claims, which nowadays basically means ELA. So the most likely scenario of what happened is that Greek banks lost (part of their) access to the Eurosystem monetary operations and replaced lost liquidity with loans from ELA. What is worrying is the fact that ELA increased by €8.8bn more than the drop in the monetary operations which should probably be translated to euro outflows from Greece (unless some other country also used ELA during the previous week).

Liability side

Bank reserves dropped €44.4bn (€2bn are accounted by the SMP fixed deposits drop). They went to the general government account (€28.9bn – that’s a lot of borrowing) and to non-euro area residents liabilities (€22.2bn). A detailed analysis of net issuance of government securities by European governments during the last week would probably be interesting. As for the external liabilites i ‘ll venture a guess: How about they were related to outflows to Switzerland and the liabilites were created due to the Swiss franc floor? It looks like half of the amount can be attributed to exactly that reason.