Leading financiers across Europe are storing increasingly large amounts of cash in central bank holdings due to changes in the regulatory environment.
That is according to a report published today (21 February) in the Wall Street Journal, which has indicated that banks have become more risk-averse over the last 12 months and have therefore boosted their deposits with central institutions.
Statistics obtained by the news source revealed that as of 31 December last year, eight of the foremost lenders on the continent held a combined total of $816 billion in such bodies.
This roughly represents a 50 per cent rise on the figure recorded at the corresponding period last year and is a reflection of the "growing pressures" being exerted on the financial system by the ongoing eurozone debt crisis.
Recently, Reuters revealed that European Union policymakers are considering altering current banking rules relating to capital holdings.
By Gary Cooper
