greek savers moving deposits off-shore

kdowling

http://www.telegraph.co.uk/news/worldnews/europe/greece/7557213/Greek-banks-hit-by-wealthy-citizens-moving-their-money-offshore.html

greek businessmen have begun to move their deposits off-shore.
Now, if the greek government bring in emergency legislation to halt the outflow of deposits how long before irish people freak out and begin moving their deposits? after all we are following them step by step.

if the greek government do this I assume the irish government will follow suit very shortly after leaving us potentially very little time to move or deposits.

fliball123

kdowling wrote: »

http://www.telegraph.co.uk/news/worldnews/europe/greece/7557213/Greek-banks-hit-by-wealthy-citizens-moving-their-money-offshore.html

greek businessmen have begun to move their deposits off-shore.
Now, if the greek government bring in emergency legislation to halt the outflow of deposits how long before irish people freak out and begin moving their deposits? after all we are following them step by step.

if the greek government do this I assume the irish government will follow suit very shortly after leaving us potentially very little time to move or deposits.

step by step bar the rioting...

later12

S&P are watching this too with their latest downgrade onthe longterm counterparty credit ratings of Greek banks to CCC. This follows on from their previous downgrade of the sovereign to CCC.

However the point is also being made that while there is a bleeding of deposits, we do not know how much of this is down to concerns of depositors and how much of it is a by-product of a failing economy.

Dannyboy83

later10 wrote: »

However the point is also being made that while there is a bleeding of deposits, we do not know how much of this is down to concerns of depositors and how much of it is a by-product of a failing economy.

Fair point, but one of my friends in Athens assures me people are moving their money out in droves.
He reckons they are not far short of some type of revolution.

As for Ireland, yes, it's already happening. But on a smaller scale.
We are not as badly off as Greece, Thank God.

dissed doc

Dannyboy83 wrote: »

Fair point, but one of my friends in Athens assures me people are moving their money out in droves.
He reckons they are not far short of some type of revolution.

As for Ireland, yes, it's already happening. But on a smaller scale.
We are not as badly off as Greece, Thank God.

Two things regarding your comment about Ireland:

1) There has been a steady bank run (electronically) in Ireland over the past 18 months or so. http://www.irishtimes.com/newspaper/finance/2011/0601/1224298206493.html

2) Those that haven't moved money to a safer banking and government location, are probably of the section of the country waiting for a personal-NAMA and 20% write downs of mortgage debt and other magical things.

Basically, the run is ongoing, it's already started. If you want to withdraw over €1500 cash in BoI in Montrose, I believe you need to give 24hrs notice.

Dannyboy83

dissed doc wrote: »

Two things regarding your comment about Ireland:

1) There has been a steady bank run (electronically) in Ireland over the past 18 months or so. http://www.irishtimes.com/newspaper/finance/2011/0601/1224298206493.html

2) Those that haven't moved money to a safer banking and government location, are probably of the section of the country waiting for a personal-NAMA and 20% write downs of mortgage debt and other magical things.

Basically, the run is ongoing, it's already started. If you want to withdraw over €1500 cash in BoI in Montrose, I believe you need to give 24hrs notice.

Completely agree but it's been heavily stacked in terms of Corporate deposits so far.
Personal deposit flight is getting underway now tho

later12

dissed doc wrote: »

2) Those that haven't moved money to a safer banking and government location, are probably of the section of the country waiting for a personal-NAMA and 20% write downs of mortgage debt and other magical things.

Basically, the run is ongoing, it's already started. If you want to withdraw over €1500 cash in BoI in Montrose, I believe you need to give 24hrs notice.

Did you read your own link? According to your own link, household deposits are down just 4% since August 2010. Since then there has been a significant economic contraction.

If BoI Montrose have a €1,500 cash limit, which would not be unusual for a university branch, then you simply withdraw a surplus through a draft, there is no problem with that.

dissed doc

later10 wrote: »

Did you read your own link? According to your own link, household deposits are down just 4% since August 2010. Since then there has been a significant economic contraction.

If BoI Montrose have a €1,500 cash limit, which would not be unusual for a university branch, then you simply withdraw a surplus through a draft, there is no problem with that.

The banks need to hold a certain amount - this is why all the bailouts were always needed. Deposit levels continuously falling, and then requiring billions extra in borrowed money to top them up. Corporate deposits will always go first as companies relocate headquarters,et c., .

As regards the €1500, it was a sign I saw for a long time before emigrating. If you have €10k in an account, you can't withdraw more than €1500 without advance notice. If you want a draft of €8500, you order it for the next day.

Basically, the point is that you cannot access your money for 24hrs. I have also seen a €1200 limit on withdrawals in EBS in Cork. Teh same limits came to Greece around 18 months ago. Drafts are useless because no shop will accept a draft for thousands if they cannot access cash themselves. It is about the restrictions on cash and deposit flight and the government's ability to do this through the banks.

later12

dissed doc wrote: »

The banks need to hold a certain amount - this is why all the bailouts were always needed.

No, that is why the ELA programme was needed, this predates the bailout and has its origins to the dislocations in the capital markets of 2007. It is also a feature of non bailout jurisdictions like the UK and Belgium, for example.

As regards the €1500, it was a sign I saw for a long time before emigrating. If you have €10k in an account, you can't withdraw more than €1500 without advance notice. If you want a draft of €8500, you order it for the next day.

It said that, specifically on the sign? I am aware of withdrawal limits in particular banks and have never heard of that limit on a bearer instrument. There is an understandable limit on cash, especially in a de facto University branch like Montrose where tellers would regularly deal in small scale transactions.

Drafts are useless because no shop will accept a draft for thousands if they cannot access cash themselves.

It is not a matter of the individual going and spending the money, generally the individual concrned is going to want to transfer funds to another account for personal financial security or another reason.

Many banks will allow you to lift 5,000 euro without prior notice, those that do require notice will not require more than 24 hours as far as I have ever encountered.

Stheno

Halifax when they were here had a rule that drafts had to be ordered in advance and you could not withdraw more than €2000 without notice.

Think permanent tsb have a similiar arrangement.

Pete_Cavan

Correct me if I'm wrong, but doesnt the EU guarantee private deposits up to €100,000? If this is the case, does moving your deposit only cost the taxpayer more in bailout money and weaken our economy (assuming you have less than €100,000)? Maybe someone with more knowledge on the subject could shed some light on this.

westies4ever

If BoI Montrose have a €1,500 cash limit, which would not be unusual for a university branch, then you simply withdraw a surplus through a draft, there is no problem with that.[/QUOTE]


have worked in both banks and credit unions. the limits on cash withdrawals and the notice periods are only there to ensure that we dont run out of cash on a certain day. branches - particularly smaller ones, only have a certain amount of cash on the premises at any given time generally as a security precaution.

Mayo Exile

kdowling wrote: »

http://www.telegraph.co.uk/news/worldnews/europe/greece/7557213/Greek-banks-hit-by-wealthy-citizens-moving-their-money-offshore.html

Probably should be noted that this article is dated April 2010. What's the situation as to corporate/personal deposit outflows from Greece at the moment I wonder?