Smart Taxes missed this interesting post by Seamus Coffey of UCC in his blog economic incentives when it first came out on February 4th 2011.
It is evident that the fall in the deposit base of domestic banks is because of a huge withdrawal of deposits from rest of the world residents. Since August these deposits have fallen from €193 billion to €121 billion. As London is outside the eurozone it is likely that a lot of the deposits classified as rest of the world originated from here.
Deposits from Irish residents were largely static up to October, but in November and December there was a drop of €11 billion with deposits falling from €303 billion to €292 billion. Like deposits from rest of the world residents, deposits from other Eurozone residents have been shown a steady decline since August and fell from €29 billion to €16 billion in the last five months of the year.
We post it here again as it supports what Richard Douthwaite writes in the latest issue of Construct Ireland where has been advising small depositors in Irish banks to walk, not run to their bank and switch savings to a non Irish bank not covered by the unsafe state guarantee. Post Office savings are not safe either.
