Greek bank deposits drop for third month in a row in March

Greek bank deposits fell in March for the third month in a row, data released by the country’s central bank showed on Wednesday.

Business and household deposits decreased by 210 million euros, or 0.17 percent month-on-month to 121.47 billion euros ($137.5 billion), their lowest level since July 2003. They had declined to 121.68 billion euros in February.

Greek banks have seen only a trickle of deposit inflows eight months after the country clinched a third international bailout to stay in the euro zone. They remain hooked on central bank borrowing to plug their funding gap.

Greece’s banking sector saw a 42 billion euro deposit outflow from December to July last year. Capital controls imposed on June 28 helped contain the flight, which sharply increased banks’ dependence on emergency liquidity assistance (ELA) from the Bank of Greece.