Reserve Bank of Australia on Friday added $2.11 billion to the financial system, seeking to ease funding costs as banks hoard cash due to the global credit squeeze.

The RBA added funds through so-called repurchase agreements after estimating money markets would have a deficit of $1.94 billion on Friday.

Australian banks increased deposits held at the RBA by $1.01 billion to $10.826 billion Thursday, after those holdings reached a record $11.04 billion on Sept. 30, the RBA said.