Private sector banking sector deposits drop in January on review jitters

Greek private sector bank deposits declined in January for the second month in a row, central bank data showed on Tuesday, as worries over the country's drawn out bailout review led to withdrawals.

Business and household deposits fell by 1.63 billion euros, or 1.34 percent month-on-month to 119.75 billion euros, their lowest level since November 2001. They had decreased by 3.42 billion euros to 121.38 billion in December.

Starting in December, the Bank of Greece stopped counting deposits of 4.2 billion euros held in the Loans & Consignment Fund and another 2.1 billion euros in the Deposit Guarantee Fund (TEKE) as private sector deposits.

Its move followed a reclassification by the country's statistics service ELSTAT, which groups the two institutions under the general government sector.

Greek banks had seen small deposit inflows in more than a year after...