Drop in deposits worrying banks

The slight decline of bank deposits last month, despite the strong tourism season, and the upcoming shift of all general government entities' cash to the Bank of Greece are generating serious concern among the country's commercial lenders.

The payment of the second installment of income tax and the first tranche of the Single Property Tax (ENFIA) in September caused a marginal drop in the deposits of households and corporations compared to the end of August, according to central bank data released on Thursday, which put the decrease at 52 million euros. Private sector deposits came to 122.57 billion euros.

However, when central government deposits are included in the sum, total deposits registered a monthly increase of 36 million euros to 133.15 billion.

The main cause of the contraction in deposits was a 242-million-euro drop in the balance of corporate accounts...