Household and corporate deposits recorded a major increase of 4.4 billion euros in December, in a clear indication of the reduction in consumption and the increased liquidity amassed in the economy thanks to the government support measures for enterprises.
The impact of state interventions has been so great that bank deposits posted total growth of €19.9 over 2020 and €17.9 billion from the start of the health crisis in March to today.
In total, private sector deposits at local banks added up to €163 billion at end-December, against €143.1 billion at end-2019. Households accounted for €126.3 billion and corporations for €36.7 billion.
More than half of the increase recorded last year is credited to enterprises that expanded their liquidity by €10.3 billion, while households saw their deposits grow €9.6 billion.
This rise in deposits highlights the economic freeze and spending cuts by families and companies, as well as the halt in dues payments not only to banks and other creditors but also to the tax authorities and social security funds.