Thursday, July 7, 2011

Bank runs begin in Greece and Ireland

Gavyn Davies refers to the image below, which presents a rather disturbing trend in bank deposits in Greece and Ireland. Notably, banks in these two countries in the past year or two have experienced a sharp increase in withdrawals of retail deposits:



Davies suggests they've lost 15% of their deposits, but it could be significantly worse than that -- note that the data in the figure only goes up to around December 2010. Extrapolate the trend through to today and I'm guessing the loss is approaching 30-35%.

Fully one third of the retails deposits in these two nations have been pulled out?! Yikes. Not a good sign. As Davies comments:
As the UK government found in the case of Northern Rock, the appearance of queues outside banks is one of the worst nightmares which a central bank can face. It has not happened in Europe – yet.

4 comments:

  1. Excellent read, Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style.www.jpburnside.co.uk |

    www.rhinomoto.co.uk |

    www.ebayshopdesigner.co.uk |

    www.vegan-candles.co.uk |

    www.oxygenediving.co.uk |

    www.montagupe.co.uk |

    www.ne7es.co.uk |

    www.happymondayscomedy.co.uk |

    www.mmmmh.co.uk |

    www.eskyhobby.co.uk |

    ReplyDelete
  2. Really great post. I simply unearthed your site and needed to say that I have truly appreciated perusing your blog entries. love wallpapers with quotes

    ReplyDelete
  3. This post is quite informative. I love reading your blogs. Quite helpful. Are you also searching for Academic content writing services we are the best solution for you. We are best known for delivering the best services to students without having to break the bank.

    ReplyDelete
  4. Your blogs are authentic and great. Are you also searching for cheap nursing writing company? we are the best solution for you. We are best known for delivering quality essay writing services to students without having to break the bank

    ReplyDelete