ECB released its weekly statement for the week ending on 20 July.

Asset Side

On the asset side, weekly and 3-month USD liquidity-providing operations decreased $3.3bn, from $10.3bn to $7bn, a highly positive development, especially after the upwards trend of the last few weeks. Lending to credit institutions decreased by €7.25bn through a lower MRO. ‘Other Claims’ (ELA) also decreased by €7.76bn. They are projected to grow this week after the ECB decision to not accept Greek government paper as collateral. Overall, the financing operations point to a clear easing of market stress during the previous week.

Liabilities Side

Banknotes dropped €1.3bn while bank reserves decreased by €25.3bn, with a positive drop in deposits related to margin calls (-€1.14bn). Current accounts kept growing (with funds only leaving the deposit facility), while General government accounts increased by €5.35bn. The entry ‘Other liabilities’ in the ‘liabilities to other euro area residents denominated in euro’ increased substantially by €6.92bn. The ECB annual accounts describes them as:

«This item comprises deposits by members of the Euro Banking Association (EBA) which are used in order to provide the ECB with collateral in respect of the EBA’s payments settled through the TARGET2 system.»

‘Liabilities to non euro area residents’ increased by only €0.9bn.


This week’s MRO was quite lower than the maturing one, at €130.7bn compared with €156.7bn, continuing a downward trend.

In general it was one of those positive weeks.