Doubts take 2-bln-euro bite out of bank deposits

Deposits in Greek banks recorded losses of 2 billion euros in the year to the end of last week, with the decline putting an end to the growth registered in the latter half of last year. Crucially, if the contraction continues it will undermine any prospects of a gradually easing of the capital controls anytime soon.

According to data gathered by Kathimerini, deposits at Greek banks added up to 129.8 billion euros on February 24, against 131.8 billion at end-December 2016. This concerns household, business and general government deposits at the four systemic banks (Alpha, National, Eurobank and Piraeus) and the three non-systemic banks (Attica, Aegean Baltic Bank and Investment Bank).

If that total is added to the balance at cooperative lenders, the sum comes to 131.6 billion, down from 133.7 billion at the beginning of the year, which constitutes a drop of 2.1 billion...