This is linked to the high level of excess liquidity and reduced short-term funding needs for banks, as well as, to some extent, regulatory changes affecting banks’ liquidity management.
The ECB has never singled out one specific short-term interest rate as its operational target, but it is clear that the EONIA, an unsecured money market rate, has provided an important point of reference to practitioners. The observed shift of activity from the unsecured to the secured market raises a number of important questions.