Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Financial News

Cyprus Imposes Capital Controls To Prevent Bank Runs

Wednesday, March 27, 2013 - 12:39 PM
From Business Insider via Yahoo Finance:
Capital controls are usually a last-ditch effort by policymakers to prevent market outcomes that seem unavoidable. In this case, confidence in Cypriot banks has been shattered in the wake of the financial crisis of recent days. Banks have been shut down since March 15, and depositors have had only limited access to their cash. It's become fairly obvious after seeing the lines at ATMs in Cyprus that depositors are trying to get that cash out as soon as they can.

... [Here are] details of the new capital controls that Cyprus will impose on its banks when they re-open in order to prevent a full-fledged bank run.

Read more

Among the controls:  deposits may be made but check cashing is suspended.   But in the face of this situation, one has to ask:  who would be depositing money?
3
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
Reply