dinsdag 28 april 2015

Greece Bank Deposits Flight

Greek bank deposit flights are continuing and we can see that here in the column of "other euro area residents". It's a very easy way to check if there is a deposit flight going on in your European country. (I checked Belgium and we are pretty stable)

http://sdw.ecb.europa.eu/reports.do?node=1000003177


Greek deposits went from 155 billion euro to 147 billion euro month over month. They probably all went to Germany.

But overall there is an increase in total deposits when MFIs are counted in. The Bank of Greece probably started confiscating deposits. So basically, people are running away with their money (drop in other euro area resident deposits), but the central bank is preventing that by confiscating it (rise in MFI deposits).

The total amount of deposits look like this, red chart is Greece: The chart rises due to an increase in central bank deposits.


 


So how to use this? I would just keep in mind how to check on the deposit flight via the tables and at some point, when interest rates get too low, people will automatically flee from their banks. Who wants to have money in a bank with negative interest rates? Don't be the last to wake up...

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