Bank de­posits re­bound in Oc­to­ber

Kathimerini English - - Focus -

Greek bank de­posits rose in Oc­to­ber af­ter a fall in the pre­vi­ous month, re­main­ing at lev­els last seen 13 years ago and keep­ing banks hooked on cen­tral bank fund­ing, data re­leased by the coun­try’s cen­tral bank showed yes­ter­day. Busi­ness and house­hold de­posits rose by 1.16 bil­lion eu­ros, or 0.94 per­cent month-on-month, to 124.63 bil­lion eu­ros, their low­est since Novem­ber 2003. They had dropped by 42.3 bil­lion eu­ros to 123.47 bil­lion in Septem­ber. Greek banks have seen only a trickle of de­posit in­flows in more than a year af­ter the coun­try clinched a third bailout to stay in the eu­ro­zone. They re­main de­pen­dent on cen­tral bank bor­row­ing to plug their fund­ing gap. The gap be­tween out­stand­ing loans and de­posits has forced Greek lenders to rely on bor­row­ing from the European Cen­tral Bank and the Bank of Greece to plug their fund­ing holes. Greece’s bank­ing sec­tor saw a 42-bil­lion-euro de­posit out­flow from De­cem­ber to July last year. Cap­i­tal con­trols im­posed on June 28 last year helped con­tain the flight but sharply in­creased banks’ de­pen­dence on emer­gency liq­uid­ity as­sis­tance (ELA) from the Bank of Greece.

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