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ECB's Coeure says no deposit flight after Cyprus bailout

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(Globalpost/GlobalPost)

BRUSSELS (Reuters) - Depositors in the euro zone have not pulled out their savings even after some large depositors were forced to take losses in bailing out Cyprus, European Central Bank Executive Board member Benoit Coeure said on Thursday.

As part of the 10-billion-euro international bailout of Cyprus, bank depositors in the country's two largest banks saw losses imposed on their holdings.

Some feared that the decision would undermine the trust in all banks in debt-stricken peripheral euro zone countries, but Coeure said statistics showed stable deposits.

"We don't see stress on deposits, we are not seeing stress on deposits since the Cypriot decisions and resolution," Coeure said in a panel discussion at a European Union event in Brussels.

"Concerns and worries are legitimate and they have to be addressed, but we are not seeing deposit stress in the euro area."

Coeure also said that uninsured deposits should always come last when deciding on the pecking order of who should be forced to take a hit in future bail-ins.

(Reporting by John O'Donnell, writing by Sakari Suoninen)

http://www.globalpost.com/dispatch/news/thomson-reuters/130425/ecbs-coeure-says-no-deposit-flight-after-cyprus-bailout