Billions of euros leave Greek banks as bail-in fears rise
By Adam Pike, News Editor
01 Jun 2015
The amount of money being withdrawn from Greek banks is accelerating as the standoff between the Greek government and its creditors continues.
Deposits held in Greek banks by households and business fell from 146.7 billion euros to 133.7 billion euros in April, a 3% drop. Since start of the 2014 election campaign 31 billion euros has been transferred out of the Greek banking system.
Private saving are now at their lowest level in a decade as Greeks remain concerned over a Cypriot style bail-in or the savings being re-denomination into devalued drachmas.
Greek banks are being denied access to ECB regular financing operations and capital markets as the standoff continues. If cash continues to flow out of the financial system banks could find themselves insolvent.