Greek households maintain deposits totaling 7.2 billion euros in foreign banks, placing Greece in third place after Cyprus and Luxembourg in a European ranking concerning the share of deposits held abroad as a percentage of total deposits. The information was highlighted in an article on the ECB blog by bank executive Matthias Rumpf. Specifically, Greek deposits in other Eurozone banks account for 4.7% of total deposits, compared with 9.5% for Cyprus and 7.5% for Luxembourg.
In absolute terms, Greece ranks seventh for total foreign deposits, with Germany leading at 52.9 billion euros. Other countries with significant foreign deposits include France (15.9 billion euros), the Netherlands (15 billion euros), Belgium (12.4 billion euros), Spain (10.2 billion euros), and Italy (9.9 billion euros). On the contrary, the lowest rankings are for Estonia (275.6 million euros), Lithuania (371 million euros), and Finland (504 million euros).
However, regarding the attraction of foreign deposits, Greek banks find themselves in the third lowest position at 0.6%, following Slovenia and Ireland. Luxembourg tops this list with 37.3%, a reflection of its historical reputation as a tax haven. Estonia (20.2%) and Lithuania (15.5%) follow suit, while Cyprus stands in sixth place with incoming deposits totaling 4.5 billion euros.
Both Greece and Cyprus faced significant challenges to their reputation as reliable deposit destinations during the financial crisis, particularly due to capital controls in Greece and the restructuring of deposits in Cyprus. This situation eroded the confidence of European depositors. Additionally, the mobility of deposits between Eurozone countries is inherently limited, although recent signs suggest a recovery in cross-border deposit activity.
Rumpf notes that European depositors collectively held 151 billion euros in foreign banks in 2023, representing 1.6% of total deposits across the Eurozone. This marks a notable increase from 95 billion euros (1.2%) in early 2020, with significant growth observed since late 2021. Key factors influencing deposit mobility include interest rates; from mid-2022 to September 2023, there was a noticeable “export” of deposits as Europeans sought higher-yielding opportunities. Furthermore, digital banks’ marketing efforts to attract foreign depositors also contribute to these trends.
Πηγή: naftemporiki.gr
