×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Moodys | Greek | Banks | lose | 8% | Deposits

Moody's: Greek Banks Have Lost 8% of Deposits

Monday, 27 June 2011 12:37 PM

Greek banks have lost about 8 percent of their private-sector deposits so far this year as customers worried about Greece's potential debt default transferred funds abroad or bought gold, Moody's said Monday.

The ratings agency said in a report that about half of the decline in deposits was also because of the cash-burn effect of Greece's recession, which caused individuals and companies to withdraw their savings to compensate for their lower income.

But "confidence-sensitive depositors concerned about local banks' financial health have also been transferring funds abroad and converting their deposits into gold coins, while others have been placing their cash into bank safety-boxes," Moody's said, citing recent media reports.

Moody's warned that Greek banks would face severe cash shortages if outflows increase to 35 percent of deposits. It called the current level of outflows "a key credit negative" for the banks.

Outflows accelerated in May and June because of political tensions and uncertainties regarding the commitment of European authorities to keep funding Greece, Moody's said.

"The potential for further deposit outflows constitutes a major liquidity risk for banks as depositor sentiment is affected by negative political developments and Greece's capability for timely repayment of its debt obligations," Moody's said in the report.

The euro initially fell about 0.1 percent against the dollar after Moody's comments. It erased losses, trading up 0.2 percent at $1.4220, as investors await a key vote this week by the Greek parliament on austerity measures.

© 2022 Thomson/Reuters. All rights reserved.


FinanceNews
Greek banks have lost about 8 percent of their private-sector deposits so far this year as customers worried about Greece's potential debt default transferred funds abroad or bought gold, Moody's said Monday. The ratings agency said in a report that about half of the...
Moodys,Greek,Banks,lose,8%,Deposits
240
2011-37-27
Monday, 27 June 2011 12:37 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved