The Greek bankrun has begun

Greek Depositors Withdrew $898 Million From Banks Monday

Greek depositors withdrew €700 million ($898 million) from local banks Monday, the country's president said, as he warned that the situation facing Greece's lenders was very difficult.

WSJ,

15 May, 2012

In a transcript of remarks by President Karolos Papoulias to Greek political leaders that was released Tuesday, Mr. Papoulias said that withdrawals plus buy orders received by Greek banks for German bunds totalled some 800 million.

Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Mr. Papoulias said "that the strength of banks is very weak right now."

Greece is heading to a new vote after political party leaders failed to reach an agreement to form a coalition government. As prospects for a solution to the political impasse dimmed in recent days, markets were gripped with fears that Greece would exit the euro zone, possibly sparking ripple effects for the currency bloc's weaker economies.

Greek banks have seen a steady decline in deposits since the start of the country's debt crisis in 2009, which prompted depositors to withdraw cash and transfer funds to overseas banks.

In the past two years, deposit outflows have generally averaged between €2 billion and €3 billion per month, though in January they topped the €5 billion mark.

The latest data from the Greece's central bank shows that total deposits held by domestic residents and companies stood at €165.36 billion in March.