This will be a quick update on Greek deposits based on relevant Bank of Greece statistical data (the table below provides monthly flows):

Greek deposit statistics Jan - Sep 2013

The (rather evident) observations are:

  • The overall increase in total deposits is attributed only to the increase in government deposits (due to inflows from abroad). Net of government deposits, the total change during the 3 quarter period is -€4.4bn.
  • The main driver has been the change in deposits of non-Euro area residents (-€4.2bn). It seems that immigrants are slowly moving their deposits abroad.
  • NFC have been losing deposits indicating that their financial position is still deteriorating.
  • Household monthly flows do not show any clear pattern. Nevertheless, flows were negative during the whole summer period with the loss escalating to almost €1bn in September.
  • As a whole the private sector has been losing deposits ever since June with no sign of a reversal in flows.

All in all, the deposit flows do not point to any signs of stabilization in the economy. On the contrary, coupled with the recent significant reduction in deposit rates, the non-financial private sector financial position is worsening both in terms of stocks and flows.