Confusion over record outflow of Cyprus bank deposits
Deposits in Cypriot banks appeared to fall at the fastest rate in history after a poorly reported adjustment to the banks included in the measure resulted in the headline stock figure reporting a yearly outflow of €5.3bn (£4.6bn) (release from Cyprus's central bank).
If deposits really fell that much, it would be the fastest rate of withdrawal in history, despite the capital controls being imposed on the country.
However, a blog by Open Europe has explained the result, identifying a paragraph hidden within the report clarifying that the “bad” part of the Cyprus Popular Bank (Laiki Bank) will no longer be included in the results, as it is “not considered a monetary financial institution for statistical purposes”. This means that Laiki depositors which will be written down are no longer being recorded.
The total amount moved to the “bad bank” is €3.8bn. Therefore, the real monthly outflow was €1.5bn – a number similar to previous months in both size and breakdown.
Of course, what will happen when the capital controls are lifted is anyone's guess…
Source: Open Europe screenshot