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Bank deposits down in troubled eurozone countries
Economics

Bank deposits down in troubled eurozone countries

29.05.2013 From our online archive
The level of private bank deposits in a number of eurozone countries fell in April, European Central Bank data showed on Wednesday, suggesting the botched bail-out of Cyprus dented confidence in the region's banks.

(AFP) The level of private bank deposits in a number of eurozone countries fell in April, European Central Bank data showed on Wednesday, suggesting the botched bail-out of Cyprus dented confidence in the region's banks.

As part of the Cyprus bail-out, the eurozone imposed losses for the first time on deposits of more than 100,000 euros, a precedent which appears to have triggered varying degrees of deposit flight across the region.

Unsurprisingly, the country most affected was Cyprus itself, where private deposits fell by 7.3 percent in a single month to 41.32 billion euros.

The impact was also felt strongly in Greece, where private deposits fell 1.6 percent on the month.

In Spain, deposits fell by 1.5 percent to their lowest level since October, they declined by 0.5 percent in Portugal, by 0.1 percent in Ireland and by 0.3 percent in Italy.

By contrast, banks in France, Germany, Belgium, Austria, Estonia and Slovakia all registered inflows in deposits, in line with their recent trend.