Deposits at Greek banks up 4.5 bln since end of bailout review

Deposits at Greek banks up 4.5 bln since end of bailout review

In the two months since Greece and its creditors wrapped up the last bailout review, deposits at Greek banks have grown by 4.5 billion euros, Kathimerini has learned.

The deposit balance rose to 127 billion euros at the end of July from 122.5 billion euros on May 24, which is when the Eurogroup rubber-stamped the completion of the review. This increase in the level of deposits underlines the positive effect that the restoration of trust, as well as the gradual relaxation of capital controls, can have on the Greek banking system’s liquidity.

According to Bank of Greece figures published last week, the deposit balance at the end of June stood at 122.7 billion euros following inflows of just over 1 billion euros during the course of the month.

According to a new study by Eurobank, around 4 billion euros in banknotes has returned to the Greek banking system over the last 12 months but it is estimated that there is another 15 to 20 billion euros being stored outside of the banking system (under mattresses, etc).

Capital controls have also led to the use of debit and credit cards skyrocketing. There was a 103 percent increase in the use of credit card machines by stores and businesses in the second half of last year, while this figure increased by another 115 percent in the first half of 2016.

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