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Bank Run Full Frontal: Ukrainians Withdrew 7% Of All Deposits In Two Days

Tyler Durden's picture




 

Well that escalated quickly. It seems the ouster of Yanukovych, heralded by so many in the West as a positive, has done nothing to quell the fear of further economic collapse in Ukraine:

  • *UKRAINIANS WITHDREW AS MUCH AS 7% OF DEPOSITS FEB. 18-20: KUBIV
  • *DEPOSIT WITHDRAWALS STILL HIGH IN THE EAST, KUBIV SAYS

This is around a 30 billion Hyrvnia loss (over $3 billion) in just 2 days for the banks and the new central bank chief is considering "stabilizing loans" to help banks deal with the liquidity crisis (though Ukraine's reserves stand at a mere $15 billion).

Reserves are in freefall... and will only get worse if the bank run continues...

 

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Tue, 02/25/2014 - 13:34 | 4476061 EscapeKey
Tue, 02/25/2014 - 13:36 | 4476079 akak
akak's picture

That's not exactly sweetening the deal.

Tue, 02/25/2014 - 13:39 | 4476109 Deathrips
Deathrips's picture

15 Billion...that ought to keep the furnace going for a few more days.

 

RIPS

Tue, 02/25/2014 - 13:40 | 4476123 JoeSexPack
JoeSexPack's picture

Too slow, Ukraine!

 

100% out last week at latest.

 

Tue, 02/25/2014 - 13:45 | 4476162 TeamDepends
TeamDepends's picture

This means buy Facebook, right?

Tue, 02/25/2014 - 13:46 | 4476174 THX 1178
THX 1178's picture

Is Ukraine the first domino?

Tue, 02/25/2014 - 13:51 | 4476215 SmittyinLA
SmittyinLA's picture

FB and Twitter #Arabspring

 

They should IPO the NSA and CIA 

Tue, 02/25/2014 - 13:54 | 4476234 TeamDepends
TeamDepends's picture

We "liked" you.

Tue, 02/25/2014 - 14:13 | 4476370 ThirdWorldDude
ThirdWorldDude's picture

Hey TeamD, I'm still waiting for you to answer some questions I had on this thread (page 2). Would you mind taking a minute and explaining to a curious mind?

Tue, 02/25/2014 - 16:06 | 4476953 TeamDepends
TeamDepends's picture

Tyler, this could be one of the all-time ZH threads:  America, Democracy Or Republic?  TWD, we really appreciate your interest in this topic as it is of the utmost importance, but if we came off as experts it was due mostly to our exemplary oratory skills.  Like the vast majority of Americans, we were taught that the US is a "democracy" and had to find out the hard way we had been lied to.  You asked about statute law, well, that is definitely beyond our pay grade.  Any attorneys in the house?  That thread got huge, so instead of us digging around for your questions, how about you repost them here and we will do our best to answer?  Again Tyler, this would be an incredibly important thread.  Even the "smart" people we know think that "republic" and "democracy" are synonymous.

Tue, 02/25/2014 - 17:56 | 4477454 ThirdWorldDude
ThirdWorldDude's picture

Fair enough, +1 for that.

A word of advice - don't pimp something you don't fully comprehend, no matter how good it looks/sounds...

Tue, 02/25/2014 - 19:54 | 4478039 TeamDepends
TeamDepends's picture

And a word of advice for you - be thankful when someone introduces you to concepts which challenge your mind and gives you references to support them.  Are we supposed to hold your hand and answer all your questions?

Wed, 02/26/2014 - 06:32 | 4479371 ThirdWorldDude
ThirdWorldDude's picture

You really are a self-righteous prick, aren't you?

I was baiting you into answering a question that majority of 'Muricans pretend to understand, but when you ask them for an explanation all you get is the sound of crickets.

Don't worry about me, I'm well aware of every possible distinction between those concepts even without your pathetic references that nullify themselves through reductio ad absurdum. Another advice - stop following blind leaders.

Tue, 02/25/2014 - 14:31 | 4476481 Urban Redneck
Urban Redneck's picture

Feb 18-20 was a week ago.

Tue, 02/25/2014 - 13:38 | 4476100 semperfidelis
semperfidelis's picture

Soon to be worthless currency.

Tue, 02/25/2014 - 13:34 | 4476067 TheRideNeverEnds
TheRideNeverEnds's picture

no worries, they are just using the money to buy more shares of Tesla. 

Tue, 02/25/2014 - 14:10 | 4476089 Meat Hammer
Meat Hammer's picture

What a coincidence!  I just did my bi-weekly bank run and am on the way to the coin shop because I can hand worthless paper to the coin man and he gives me real money.  It's magical, really.

Tue, 02/25/2014 - 15:42 | 4476850 swmnguy
swmnguy's picture

You want "magical?"  You should talk to Fonestar.

Tue, 02/25/2014 - 13:39 | 4476111 zippy_uk
zippy_uk's picture

LONG - park your Russian tank somewhere else in exchange for some Ukranian Cash...

Tue, 02/25/2014 - 13:40 | 4476112 Colonel Klink
Colonel Klink's picture

Bank run, Bitchskis!

Tue, 02/25/2014 - 13:40 | 4476116 TheFourthStooge-ing
TheFourthStooge-ing's picture

They had seven percent of deposits on hand? Sounds like the Ukrainian banks are in far better shape than US banks.

Tue, 02/25/2014 - 13:48 | 4476189 motorollin
motorollin's picture

Damn straight! A 7% withdrawl would crush the smal regional bank that I work for.

Tue, 02/25/2014 - 14:44 | 4476563 css1971
css1971's picture

3% would crush any american bank, and 1% any European one.

Tue, 02/25/2014 - 13:42 | 4476137 SillySalesmanQu...
SillySalesmanQuestion's picture

Soooo, thats why they sent APC's...to catch the Banks running.

Tue, 02/25/2014 - 13:43 | 4476148 nonclaim
nonclaim's picture

Last ones get Cyprused.

Tue, 02/25/2014 - 14:25 | 4476445 disabledvet
disabledvet's picture

this is an interesting take on "bail ins." Confiscate "through invasion."

Have the Commanders been promised dachas and "endless women"?
My first thought is...and still remains..."this has not escalated quickly" actually.

Glad we're all on the same sheet of music vis a vis "territorial integrity."
No...I won't be kicking backing "throwing down the popcorn."

Tue, 02/25/2014 - 13:47 | 4476183 syntaxterror
syntaxterror's picture

What's the DBPC (dead banker per capita) gonna be?

Tue, 02/25/2014 - 13:49 | 4476200 SmittyinLA
SmittyinLA's picture

If the EU or NAZI Germany just took over your govt, or was about to take over your govt, and hold a vote of Mexicans what to spend everybody's money on, what would you do with your money? 

Tue, 02/25/2014 - 15:45 | 4476863 Solarman
Solarman's picture

Define who is who in your eyes.

Tue, 02/25/2014 - 13:52 | 4476224 americanspirit
americanspirit's picture

I wonder how much of that withdrawn paper is being turned into gold and silver. One would hope 100%.

Tue, 02/25/2014 - 17:05 | 4477190 Debugas
Debugas's picture

you will not be able to buy gold or silver with hryvna because about two weeks ago hryvna convertability to USD and EUR was suspended (banks not selling USD EUR to the public)

 

for now it is just buy whatever you still can

 

and it is getting harder and harder e.g. pharmaceutical importers withhold selling various drugs for the time being speculating hryvna will fall further.

The new parliament asking them not to speculate on that

http://medicine.rbc.ua/rus/gosleksluzhba-prizvala-postavshchikov-vozderz...

Tue, 02/25/2014 - 13:53 | 4476225 negue
negue's picture

Ah, so Ukraine is just a proving ground?

Tue, 02/25/2014 - 13:57 | 4476252 IridiumRebel
IridiumRebel's picture

Deposit flight. APCs in the streets.....This is a job for CHRISTINE LAGARDE! FORM OF IMF DEBT!

Tue, 02/25/2014 - 14:16 | 4476351 Kirk2NCC1701
Kirk2NCC1701's picture

Ukraine: another Bitchistan for King Dollar and Prince Euro.

Russia, if you like your (gold-backed?) Ruble, you can keep your Ruble.  Hint: the currency that gets used by the most people and countries... fucking WINS.

It turns out that Sochi was more of a curse than a blessing, given that the Russian Bear was too busy putting on a show for the exact critical 3 weeks.  If they didn't act decisively against the hooligans and potential terrorists back then (before regime-change), they sure as hell aren't going to act now (after regime-change).

APCs and a boat of 200 (what's that, Cleaning & Maintenance!?) sure as hell isn't much.  It's barely symbolic -- much less tactical or strategic.  "All hat, no cattle", as they say in Texas. 

Am disappointed with the "too little, too late" moves.  Russians are playing pure defense, but their Head Coach loves to show the new (Under-Armor) uniforms of their Offensive Team.  Meanwhile, the Opposition is deep in the Red Zone, looking to score a TD.  Sorry, but I call it like I see it. 

Tue, 02/25/2014 - 19:18 | 4477875 HurricaneSeason
HurricaneSeason's picture

I thought the Ukraine broke away from Russia 25 years ago and were no longer Russia's problem. They offered $15 billion cash and 33% off their gas bills and that's off the table now. Russia is building a pipeline to Bulgaria, probably because Ukraine was skimming off Europe's winter heat and not paying their Gazprom bills. I don't see how Russia is losing here. Putin said in January that he would work with the new Ukraine government regardless of who it turned out to be. He surely didn't envision rioters.  Russia cut off agricultural imports from the Ukraine and Gazprom will surely be trying to ship to Bulgaria and China instead of the Ukraine. However bad it is in the Ukraine now, it's surely going to be much worse and Russia wont need to be holding the bag with all the anti Russian propaganda in the Ukraine and elsewhere. Obama gets to pick the Ukraine leaders and Europe gets to pay the bills. Greece will look good and Russia wont cry.

Tue, 02/25/2014 - 14:14 | 4476383 AG BCN
AG BCN's picture

I'm going to need more popcorn. 

Tue, 02/25/2014 - 14:25 | 4476441 ghostzapper
ghostzapper's picture

Coming Attractions:

Bank of America fights off massive bank run in response to withdrawal of 0.000000007% of all deposits.  

Tue, 02/25/2014 - 14:29 | 4476467 monad
monad's picture

Good move, but fiat devalues in your mattress too. Buy stuff you need - food, gas, tickets out of Ukraine...

Tue, 02/25/2014 - 14:45 | 4476569 No Euros please...
No Euros please we're British's picture

Meh, gas in a matress is not such a good idea, especially if you smoke in bed.

Tue, 02/25/2014 - 14:48 | 4476587 Serfs Up
Serfs Up's picture

If you like your deposits, you can keep your deposits.

Tue, 02/25/2014 - 16:01 | 4476923 Dr. Acula
Dr. Acula's picture

I don't see the problem. They just walk to the vault and pull the cash out, right?

It's not like they're routinely committing fraud and violating bailment agreements.

 

Tue, 02/25/2014 - 16:04 | 4476943 Dr. Acula
Dr. Acula's picture

This is why I keep my life savings at Magic the Gathering Online Exchange.

 

Tue, 02/25/2014 - 16:54 | 4477170 Debugas
Debugas's picture

http://www.xe.com/currencycharts/?from=USD&to=UAH&view=10Y

anyway most ukranians keep their savings in either USD or EUR

 

Tue, 02/25/2014 - 18:31 | 4477620 Watson
Watson's picture

Given the circumstances, it would be surprising if there were _any_ demand deposits left inside the Ukrainian banking system by this stage.

Term deposits are presumably running out 100% with the notice period.

There is no upside, but very considerable downside, associated with leaving any form of asset inside that banking system. 'Asset' includes safe custody boxes - if the banks are closed for an unexpected holiday don't think those boxes won't be subject to some sort of 'national emergency' state examination and 'solidarity sequestration'.

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