Savers from other Euro zone countries withdrew 18 per cent of the cash they held in Cyprus in February, amid concerns the struggling island would impose a tax on bank deposits.
Figures from the Central Bank of Cyprus published on Thursday showed deposits from other Euro zone states fell euro 860 million to euro 3.9 billion, making them the fastest category to leave the stricken country. Deposits from non-Euro zone countries actually rose, by less than 1 per cent to euro 21 billion, while deposits from local residents fell less than 1 per cent to euro 42.6 billion.
Overall, deposits were down almost euro 1 billion to euro 67.5 billion. Separate figures from the European Central Bank, which are prepared using a different methodology, showed deposits fell euro 100,000 to euro 72 billion.
They are expected to fall more sharply in March, with significant outflows reported in the days after the March 15 announcement that Cyprus would levy a 6.75 per cent tax on all deposits under euro 100,000 and a 9.9 per cent levy on deposits above the euro 100,000 mark.
The levy was rejected by Cyprus lawmakers, and replacement measures will see large depositors in fallen Cyprus Popular Bank lose about 80 per cent of their cash, while big depositors in Bank of Cyprus will lose 30 to 40 per cent.
Meanwhile, the euro hovered near a four-month low and safe-haven German government bonds rose on Thursday, as fears of a potential run on Cyprus's banks stoked investors' concerns.
The uncertainty left the euro languishing near a four-month low, as the last trading day of the quarter and ongoing political uncertainty in Italy added to the cautious mood.
"It is likely to be another difficult day," said Daiwa economist Tobias Blattner.
"Despite all the rowing back from policymakers, everybody now understands that the lesson from the Cypriot bailout is that PSI (private sector involvement) in whatever form will be a cornerstone of any future bailout."
At 0815 GMT (04:15 am EST) the euro was at $1.2794 to the dollar, having briefly clawed back above $1.28 in Asian trading.
European stock markets were also subdued. The FTSEurofirst 300 index of top shares inched up 0.2 per cent as the previous session's sharp falls tempted back buyers, but it remained on course for its second successive week of losses.
German government bonds, an asset that investors turn to in times of increased tension, rose in early deals, with bund futures up 10 ticks near a three-week high.
In Asian trading, Japan's Nikkei stock average and other indexes in the region had also closed lower in their final session of the quarter.
