Bank of Greece: Household deposits up in January

Deposits in Greek banks rose in January while the net flow of credit to the private sector was negative in the first month of 2021, the Bank of Greece said on Thursday. The central bank, in a monthly report, said that deposits placed by households and private non-profit institutions increased by 655 million euros, compared with an increase of 3.433 billion euros in the previous month, with the annual growth rate increasing to 10.1 pct from 8.6 pct in the previous month. In January 2021, deposits placed by the private sector decreased by 1.211 billion euros, compared with an increase of 4.651 billion in the previous month; the annual growth rate increased to 15.2 pct from 14.4 pct in the previous month.

Corporate deposits decreased by 1.866 billion euros, compared with an increase of 1.218 billion in the previous month; the annual growth rate decreased to 39.0 pct from 39.9 pct in the previous month. In particular, deposits from NFCs decreased by 1.893 billion, against an increase of 1.861 billion in the previous month. Deposits placed by insurance corporations and other financial intermediaries increased by 27 million, compared with a decrease of 643 million in the previous month.

In January 2021, deposits placed by the general government decreased by 750 million, compared with an increase of 458 million in the previous month; the annual growth rate stood at -40.1 pct from -34.6 pct in the previous month.

The annual growth rate of total credit extended to the domestic economy increased to 15.8 pct from 13.8 pct in the previous month, while the monthly net flow was positive by 1.858 billion euros, compared with a positive net flow of 2.886 billion in the previous month. The annual growth rate of total deposits increased to 9.6 pct from 9.5 pct in the previous month; the monthly net flow was negative by 1.961 billion, compared with a positive net flow of 5.109 billion in December 2020.