Deposits soared in lockdowns
Household and corporate deposits jumped 19.6 billion euros during the pandemic, showing that the freeze on consumption combined with the state support measures served as a safety cushion for liquidity in the private sector.
The additional cash flow during the successive lockdowns will be the driving force behind the economy’s rebound, as the reopening of enterprises entails increased needs for the supply of raw materials and the financing of the resumption of key sectors such as commerce, food service and tourism.
Bank of Greece data on the course of deposits from March 2020 to March 2021 revealed that at the end of this year’s first quarter, banks reported a sum of €164.7 billion, against €145.1 billion a year earlier. This constitutes a remarkable increase of 13.5% in one year. That rise amid a recession is more impressive when compared with the €8.2 billion rise from 2019 to 2020.
Household deposits at endMarch amounted to €128.3 billion, up 9.1% from a year earlier, while the liquidity of enterprises added up to €36.4 billion, posting a considerable 32.6% annual expansion. This rise in corporate cash flows is not only thanks to state support but also to €6.9 billion of net new credit.