Greek bank deposits drop for second month in a row in February

Greek bank deposits fell in February for the second month in a row after a 2.05 percent increase in December, data released by the country’s central bank showed on Tuesday.

Business and household deposits decreased by 550 million euros, or 0.45 percent month-on-month to 121.68 billion euros ($136.3 billion), their lowest level since July 2003. They had declined to 122.23 billion euros in January.

Greek banks have seen only a trickle of deposit inflows seven months after the country clinched a third international bailout to stay in the eurozone and 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.