The European interbank market shrank in the fourth quarter of last year, as dealers reduced the amount of lending to and from each other.
Nine of the 13 banks analysed by Risk Quantum disclosed a decrease in lending to other firms, while all 12 firms for which data on deposits from other institutions is available saw a drop during the same period.
On aggregate, lending to banks fell by 17.8% to €177.7 billion across the sample, while deposits from banks dropped by 22.4% to €391.1 billion.
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