Deposit inflows to Greek banks reached 4.5 billion euros over the last two months, namely after May 24 – the date of the Eurogroup that approved the Greek program evaluation – until late July.
According to the Greek newspaper Kathimerini, the total deposits to Greek banks amounted to 127 billion euros in late July, 122.5 billion euros on May 24, an increase that may be indicative of the positive effect that the restoration of confidence may have to the banking system, along with the gradual relaxation of capital controls.
As shown in a recent study conducted by Eurobank on the impact of the capital control restrictions on the Greek economy and the lessons learned from Cyprus, deposits in June 2016 increased by about 1 billion euro on a monthly basis and by 1.9 billion euros compared to July 2015, the first month that the capital controls were implemented.
Also the study showed that the trading habits of households and businesses have changed significantly since the imposition of capital controls. According to recent data, the use of plastic money (mainly debit cards) continues to strengthen as opposed to the use of paper money.
Finally, while comparing Greece’s situation to Cyprus, Eurobank notes that an action plan that entails all the necessary milestones that will lead to the complete lifting of capital restrictions, is required.
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