ECB released its weekly statement for the week ending on 3 August. It’s one of those rare positive statements.

Asset Side

On the asset side, the weekly USD liquidity-providing operation decreased $1bn, from $8bn to $7bn. Lending to credit institutions increased by €1.8bn due to a larger MRO. ‘Other Claims’ (ELA) decreased significantly by €10.5bn after a very large increase in the previous week.

Liabilities Side

Banknotes grew €4.8bn while bank reserves dropped by €3.1bn, with current accounts continuing to grow (with funds flowing from the deposit facility). General government accounts decreased by €9.7bn while ‘Other liabilities’ (in the same category with government deposits) increased again by €1.8bn. A very positive development was the fact that ‘Liabilities to non euro area residents’ were lower €5.3bn this week.

New MRO

This week’s MRO increased a bit compared to last week’s. recording at €133.4bn compared with €132.8bn.