European banks redeposited around 777 billion euros with the European Central Bank overnight deposit facility, where this figure represents almost three quarters of the cheap funds pumped into the financial sector by the European Central Bank thorugh the long-term refinancing two operations.

This week European banks placed more than 520 billion euros of bids for three-year loans, more than the 489 billion euros obtained previously when the ECB provided cheap funds in December.

This could raise tension in the market as we can see European banks don't lend each other, yet they prefer to redeposit the cheap funds back again at the ECB.