The European Central Bank announced that overnight deposits from commercial banks hit a new record high of 453 billion euros from the prior record of 452.034 billion registered last week, adding to signs of increasing fears between banks over the debt crisis, as they prefer not to lend each other to avoid risks of a near default.

Despite the ECB imposed lower interest on these deposits, paying 0.25% interest for overnight deposits, compared to interest for overnight loans between banks 0.396%, as the deepening debt crisis lead many institutions to have a shortage in liquidity and lack of trust to lend each other and prefer to put their money at the ECB.

The ECB is worried that the euro zone banks could experience a credit crunch, espically after the ECB awarded financnial instituation with cheap money and offered the banks unlimited funds in maturities ranging from one week to three years at a rate of 1%.