Eurozone banks put a record-high €316.4 billion in the overnight deposit facility of the European Central Bank, according to data from the bank. The deposit increase comes amid concerns that banks continue to face significant write-downs and is similar to a situation that followed the 2008 collapse of Lehman Bros. "The increase in the deposit facility to such high level signals an increase in the perception of counterparty risk," said Luca Cazzulani, UniCredit's deputy head of fixed-income strategy.

Related Summaries