Friday, September 2, 2011

Is There Reason To Be Concerned about Banking System Liquidity In Europe and the UK?

link here to article

This article looks at deposits in European banks by other banks and by households and businesses. In some countries, like Greece, withdrawals by households and businesses from Greek banks is not apparent by looking at total withdrawals. Deposits by other banks in Greece has compensated for household and business withdrawals as part of the rescue effort. In other countries household and business deposits continue to grow but there has been a reduction in deposits by international banks in Europe and in the UK. This raises a concern about a slow loss of liquidity in Europe and in the UK banking systems.

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