Archive for May 21st, 2012

21/05/2012

Exodus from Spanish Banks: 50 Billion Euro in 18 Months

Human Wrongs Watch

By Alejandro López (WSWS*) 21 May – The latest available statistics on bank deposits show that €50 billion euros have left Spain since January last year. This was announced as the German news agency DPA reported that almost €900 million was withdrawn by Greek savers on May 14 alone.

**Spanish Central Bank. Author Luis García (Zaqarbal) | Wikimedia Commons

According to data compiled by Thomson Reuters, Greek banks have lost around €72 billion (30 percent) in deposits since 2010. In Belgium, France and Italy, depositors have also taken flight from banks.

There are growing fears in Spain that the withdrawal of €50 billion (2.9 per cent of Spain’s deposits) will cause a bank run when customers who have lost confidence in their banks rush to take out their savings. The real magnitude of the current outflow of cash is unknown, as the data only includes the changes in deposit as of March of this year—the last month of published statistics.

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