Yes, Greece has a serious case of the (bank) runs.
Greek bank deposits have declined rather severely in recent years.
Prompting this reaction from the ECB:
(Bloomberg) The European Central Bank plans to hold an emergency session of its Governing Council on Friday to discuss the deteriorating liquidity situation of Greek banks, three people familiar with the matter said.
The call is scheduled for noon Frankfurt time on Friday, and the officials will consider a Bank of Greece request for an increase of more than 3 billion euros in Emergency Liquidity Assistance, one of the people said. All three asked not to be identified as the plans aren’t public. An ECB spokesman declined to comment.
The request comes just a day after Greece received an increase in its liquidity line of 1.1. billion euros ($1.25 billion), which raised the limit to 84.1 billion euros.
The short interval may be a signal that deposit flight is accelerating as the latest bailout talks ended without progress on Thursday. With Greece cut off from global markets, the country’s financial system depends on central-bank liquidity to replace deposits withdrawn amid the political uncertainty over the country’s place in the euro.
Greek credit default swaps are rising on the short-end most noticeably. Compare Greek CDS to their leading credit, Germany.
Sadly, Greek unemployment is over 25%.
Skittishness about the future of the Greek economy coupled with 25+% unemployment will give any country the (bank) runs.
Opa! Their banks are on fire!