Cypriot Banks Reopen, And So Far It's Pretty Quiet
Wall Street Journal's Joe Parkinson reports that only eight people are being allowed in at a time at one Bank of Cyprus branch.
However, the crowds have been orderly.
Everyone is wondering whether there will be a huge run on the banks.
So far? Not yet.
This is likely due to a set of capital controls that have been imposed on the banks. Specifically, Cypriot depositors cannot withdraw more than 300 euros per day from any one bank. Also, checks cannot be cashed.
These controls will be in place for seven days.
Earlier this month, euro zone leaders drafted a deal to bail out Cyprus's banks. It included an unprecedented levy on all Cypriot depositors, which was met with outrage from around the world.
The revised deal spares insured depositors —those with over 100,000 euros in the bank — from taking a hit.
However, some experts warn that at least some depositors are now spooked by the possibility that their deposits could be hit by a surprise levy at any moment.
Folks on the ground just see a handful of real folks.
But for the most part, it's just a ton of reporters.
Of course, the actual outflow of money electronically could be more severe and less apparent to the outside world.