Greek Banks’ Cash Buffers Badly Strained: Goldman Sachs

Amidst media reports speculating that Greek banks could exhaust their residual cash buffers in the next few days, Goldman Sachs anticipates the banks’ cash buffers could come under strain at any point.

Pawal Dziedzic and team at Goldman Sachs published a report titled: “ECB decisions post “no vote” unlikely to bring liquidity relief” on Monday following the “no” vote in the Greek referendum.

Greek banks’ cash buffers draining

The Goldman Sachs analysts point out that the Greek banks are currently funding deposit outflows with their remaining cash buffers, in the absence of the ECB providing liquidity backstops. They argue that without additional ECB liquidity, further restrictions on the present daily withdrawal allowance (EUR 60 per account) may soon become necessary.