Alpha Bank’s weekly economic report shows a marginal increase in deposits held in Greek banks, by 0.4 percent, in June 2016. The tiny increase is, nevertheless, important, given that the rate of deposits fell by a whopping 23 percent in December 2015, followed by -9.1 percent and -6.3 percent in April and May 2016, respectively.
The stabilizing level of deposits comes amid loosened, but still imposed capital controls in the recession-plagued country.
Alpha Bank cites the successful – albeit delayed – first review of the Greek program (third bailout) in late spring. A further loosening of capital controls is also expected to boost deposits in Greek banks. The finance ministry last month decided to lift capital controls on “new cash” entering the domestic banking system.
Capital controls were imposed by the leftist Tsipras government late last June less than 48 hours after a hastily called referendum on creditors’ terms at the time. The idea was to prevent a “bank run” in the country.
