“Our explanation for the coexistence of a sizeable liquidity gap and short-term rates well below the key rate level is that the system may be divided into two groups: a smaller pack with a liquidity gap and a larger, market-driving group flush with liquidity,” the report noted.
ING analysts said deposits parked at the central bank fell to RON1.1 billion in daily average terms in February, from RON2.1 billion a month earlier.
“This could be because the more liquid group has increased its holding of government debt or that maybe liquidity has flowed better from one group to the other,” the report showed. (EUR1=RON4.3553)