Private sector deposits up more than 1.5 bln euros in June

The increase in new deposits combined with the decoupling of banks from ECB borrowing help improving liquidity conditions in the domestic banking system making it easier to fully lift remaining capital controls in the market, which is expected in early autumn.
 More specifically, the Bank of Greece said that in June 2019, deposits placed by the general government increased by 594 million euros, compared with an increase of 282 million in the previous month and the annual growth rate stood at 8.2 pct from 0.8 pct in the previous month.  
 Deposits placed by the private sector increased by 1,766 million euros, compared with an increase of 562 million in the previous month and the annual growth rate stood at 6.0 pct from 5.7 pct in the previous month. Corporate deposits increased by 689 million euros, compared with an increase of 217 million in the previous month and the annual growth rate stood at 5.3 pct from 3.6 pct in the previous month. In particular, deposits from non-financial corporations increased by 869 million euros, against an increase of 150 million euros in the previous month. Deposits placed by insurance corporations and other financial intermediaries decreased by 180 million euros, compared with an increase of 67 million euros in the previous month. 
 Deposits placed by households and private non-profit institutions increased by 1,077 million euros, compared with an increase of 345 million in the previous month; the annual growth rate stood at 6.1 pct from 6.2 pct in the previous month. 
In June 2019, the annual growth rate of total credit extended to the domestic economy stood at -0.3 pct from 0.1 pct in the previous month, while the monthly net flow was negative at 171 million euros, compared with a negative net flow of 597 million in the previous month. 
 In June 2019, the monthly net flow of credit to the general government was negative at 1,107 million euros, compared with a negative net flow of 273 million in the previous month; the annual growth rate stood at -0.7 pct from 1.6 pct in the previous month. 
In June 2019, the annual growth rate of credit to the private sector stood at -0.2 pct, unchanged from the previous month. The monthly net flow of credit to the private sector was positive at 936 million euros, compared with a negative net flow of 324 million in the previous month.