Data from the European Central Bank showed that €74bn of deposits left Spain in July. This was a 4.7 per cent drop from June, which seems rather a lot for just one month. The figure for August, released on Thursday morning, revealed that a further €17bn had headed out the door.
While this so-called deposit flight is being reported as putting pressure on the Spanish government, the data behind it isn’t quite as concerning as one would imagine. Read more
This is something we have been meaning to get around to for a while.
It’s about that Spanish ‘bank jog’ making headlines all over the place and seems pretty timely right now, what with the banking deposit scheme thing floundering so badly. From the FT: Read more
We’ve all been griping about the “bank jog” that has been eating away at the Greek banks’ deposit base — €70bn or so of deposits flying out of the country’s banks seems to be a bad news no brainer.
But what if the scale of the flight has a counter-intuitive positive side? (Although “ever so slightly less negative side” would probably be a better description.) Read more