Overnightdeposits at the European Central Bank reached an all-time high, suggesting banks remain more willing to park money at the ECB than to lend to other banks.
The worry among depositors is not just that their bank will go bust, it is also that their deposits in euros may overnight turn into a less valuable currency.
Plus, they were lending the money short (often only overnight) and the banks taking in those deposits were transforming them into longer term loans to their customers.
But euro-zone policy makers may not have the luxury of time, particularly if loose talk of depositor haircuts continues to circulate in a country where a quarter of deposits are foreign-owned with overnight notice.