Wary savers flee from banks to Poste Italiane
The Italian state-owned group is taking an increasing share of savers’ deposits as the financial crisis has raised concerns over the safety of banks.
The Italian state-owned group is taking an increasing share of savers’ deposits as the financial crisis has raised concerns over the safety of banks.
The latest data from the group show a big inflow into savings accounts, new current accounts and savings certificates in October in spite of government assurances about the safety of the country’s banks and depositor guarantees of up to €100,000 ($127,000).
Italians have higher levels of savings and lower debt than most Europeans and appear to be rushing to the relatively safe haven of domestic government debt in the wake of the global financial turmoil, leaving behind both bank accounts and mutual funds.
“They [savers] were disoriented and have preferred traditional instruments to more speculative ones,” said Massimo Sarmi, Chief Executive of Poste Italiane. “Poste invests everything in state bonds.”
Poste Italiane data show purchases of savings certificates in October were 286% above September, while deposits in savings accounts jumped 112% month on month. The number of new current accounts opened in October was 36% more than in September.
The group did not disclose the actual amount deposited in October, but said that from January to October it took in €59.6bn in deposits, and issued €23.6bn of savings certificates.
Italian mutual funds in contrast recorded net outflows of €22bn in October.
In total, Poste Italiane manages €340bn of savings. Savings certificates account for €186bn. The 5.5m current accounts, of which 750,000 are online, represent 10%. It also issues pre-paid cash cards.
