Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Bank Deposits Are Fleeing to Money Market Funds
In episode 145 of The European Economy Podcast, Lucas and Luna examine a quiet but powerful shift in the Eurozone: households and corporates are moving cash out of bank deposits and into money market funds. With short-term rates still elevated and the ECB signaling patience, the region's banks are losing cheap funding while money funds swell to record assets. The hosts unpack how this deposit migration is compressing net interest margins at lenders like Santander and BNP Paribas, and what it means for the ECB's next policy move. They also tie it to the latest data: the euro holding…
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