Update on run on the European banking system

A Telegraph article discusses how the bank deposit run continues in the troubled peripheral countries.  This is not surprising given that depositors do not know if the bank holding the deposit is solvent or not or if the guarantee covering their deposit is good or not.

Italian and Spanish banks suffered the largest outflows of depositors' money last year as customer fears over the safety of money held at Southern European lenders escalated. 

More than €100bn (£83bn) of deposits were withdrawn in the 11 months to the end of November last year, with €61bn taken out of Italian banks, the largest overall outflow of money from any eurozone banking system, according to Credit Suisse. 

Spanish banks suffered the second largest withdrawals at €48bn, equal to just under 3pc of total Spanish bank deposits, while Greek banks recorded the largest percentage fall in deposits with €42bn withdrawn, equal to a fifth of the country's total deposit base. 

Together Greek, Portuguese, Irish, Spanish and Italian banks suffered net withdrawals totalling close to €150bn, exacerbating their already considerable funding problems.