Greece Savers Shy Away from Banks

Greek savers have pulled about 2 billion euros out of banks over the past three days, with the pace of outflow accelerating rapidly since the collapse of talks at the weekend with creditors, three banking sources told Reuters on Thursday.

The spike in withdrawals piles yet more pressure on Greece’s battered banks and provides new evidence of the hit to the financial system and broader economy from deadlocked negotiations between Athens and its euro zone and IMFcreditors.

The 2 billion euros taken out by savers between Monday and Wednesday represent about 1.5 percent of the total household and corporate deposits of 133.6 billion euros held by Greek banks as of end-April. Prior to this week, withdrawals had been running at 200-300 million euros a day.