Money in Greece. Five graphs and some problems.
Straight from the Bank of Greece: some data on Greek money. Can there be a bank run? How much money do the banks owe the public? How about securitization? Some highlights:
1) The Greek were, before 2008, quite thrifty.
2) By far the larger amount of money is owned by households, largely in the shape of time deposits. Which means that these households have a problem when the unaccountable civil servants of the ECB halt ELA (Emergency Liquidity Assistance). The households will often have to pay a haircut when they withdraw their money.
3) The government has, at this moment, a sizeable amount of money in the banks. It is remarkable that so much government money is in private banks. It means that the government, pressed by the Troika, did not only fund these banks with billions upon billions of direct aid but also funded them with deposits. Will the government have to pay a haircut, too, when the ECB halts ELA?
4. Recognition by the bankers and the accountants that money owned by (probably) shadow banks is money, too, led to a 30 billion increase in the measured amount of money. Mind that these are debts owed by the normal banks to the shadow banks. In a sense the 25 billion or so of government aid to the bank served to enables the banks to honour the deposit debts they owed to the shadow banks.