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Central Banking 101: the EONIA heartbeat | 178 comments (178 topical, editorial, 0 hidden)
Re: Other views: Trichet (4.00 / 2)
Migeru:
growing tensions within the group of healthier banks

The break in mid-2010 is so striking that this is unlikely to be a gradual process of loss of trust between banks for overnight lending. What we need is a handle on how real overnight rates are agreed on between banks. What can raise the rate (which is an average) several days in a row? And even spike above the MRO rate? Scarcity of money overall, or non-trustworthy banks looking for deals on that market, both..?

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Feb 27th, 2011 at 03:57:48 PM EST
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Re: Other views: Trichet (none / 0)
And what are the options of healthy banks wrt lending overnight. Can they pick and choose to whom they will lend or is there some other factor at play?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Mar 2nd, 2011 at 08:51:01 PM EST
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Central Banking 101: the EONIA heartbeat | 178 comments (178 topical, 0 editorial, 0 hidden)
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