Cash-rich companies previously preferred bank deposits
because they paid slightly higher rates than bonds and were more liquid, with maturity profiles that ranged from days to 12 months.The newly imposed low returns on deposits have, however, seen many opt to trade liquidity offered by the lenders for higher returns on government bonds and T-bills.
But it noted that bank deposits
grew by about $8 billion in the 12 months leading to June 2015 relative to an increase of around $3 billion in the public debt, which suggests an ample and sustainable source of financing, even in current conditions.
What's more, in the context of KTB, public funds will used to repay BGN 3.6 B in guaranteed bank deposits
and interest on them,""Stoyanova said.
With the BIR regulation, the lawyers and bankers warned that unless this is amended to make bank deposits
really secret, big depositors might close their accounts, resulting in the flight of capital.
Nevertheless, today the population trusts in the bank deposits
and the share of the deposits is increasing," said Kelimbetov.
Total bank deposits
increased marginally by 0.3 per cent in April, to close at Dh1.2418 trillion, as a result of an increase in resident deposits by 1.3 per cent.
Stournaras noted that there was no danger for Greece to be affected by the consequences of the crisis in Cyprus, which had rejected a proposed levy on bank deposits
as part of its international bailout.
Former President of the Republic Demetris Christofias has dismissed allegations that his government had given its consent for a haircut on Cypriot bank deposits
The cash-strapped lenders have been closed since Saturday, when Cyprus said it would raid personal bank deposits
to help fund its international bailout package to avoid a bank run.
Parliament rejected the previous plan, which involved seizing up to 10 percent of people's bank deposits
In exchange for 10 billion euro (PS8.6bn) in rescue money, the government proposed a one-time tax of 6.75% on all bank deposits
under 100,000 euro (PS86,490) and 9.9% over that amount.
PRESIDENT Nicos Anastasiades said yesterday that savers made to pay a tax on bank deposits
as part of a sovereign bailout deal will be compensated by shares in banks guaranteed by future natural gas revenues.