ECB: Spain bank deposits tumbled in April

LONDON (MarketWatch)
Private deposits gushed out of Spanish banks in April on fears the country's financial industry has understated its problems with property loans
Retail and corporate deposits in Spanish banks fell by EUR31.44 billion to EUR1.624 trillion, their lowest since the euro-zone debt crisis began in earnest, according to European Central Bank data published Wednesday
By contrast, private deposits at Greek banks were stable in April, rising 0.2%, or just under EUR400 million, to EUR171.48 billion
That was before elections in May threw into question the country's future in the euro zone, promting a flurry of deposit withdrawals
The ECB data also showed a change in tactics by the banks in the euro zone's periphery in April
After two months of snapping up government bonds, Spanish and Portuguese banks turned net sellers, and Italian banks reduced their net purchases to EUR6.62 billion from an average of EUR23 billion a month in the first quarter