BUSINESS

Moody’s sees deposit return in local credit system

TAGS: Banking

Moody’s rating agency forecast in its Credit Outlook report published on Thursday that Greek banks will attract more deposits after the easing of capital controls, set to apply fully from Monday, August 1.

“The new measures will likely encourage households and corporations to gradually return to the local lenders part of the money they retain outside the banking system,” Moody’s expects.

The rise in clients’ deposits will then help Greek banks reduce their dependence in the emergency liquidity assistance (ELA) mechanism of the Bank of Greece, which came to 54.4 billion euros in end-June.

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