Spain’s deposits reach fresh low since 2008 in August

Capital flight from Spanish banks continued in August, when deposits fell about 1% to €1.492tr, a fresh low since April 2008, according to data from the European Central Bank.

Spain’s central bank said that funds moved from deposits into commercial paper, following the decision by the regulator to penalise high-interest deposits to stop a deposit war between banks.

The local mutual banks ‘cajas’ were particularly affected by deposit outflows during the month. On Friday, management consultant Oliver Wyman released the results of a stress commissioned by the government.

The test showed that Spain’s banks have a capital deficit of €59.3bn, less than previously estimated.

Nationalised lender Bankia had a €24.7bn deficit and Banco Popular Espanol SA had a €3.22bn shortfall, but Oliver Wyman found that seven banks had no deficit, including Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA and Banco Sabadell SA. 

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