Insider – several Greek banks threatened closure – Reuters Germany

       

– John O’Donnell

       

Frankfurt (Reuters) – Even with an agreement in the debt dispute with Greece could queue an upheaval in the banking sector of the euro-State According to insiders

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Several large institutions would probably be closed and merged with stronger, said people familiar with the thinking of the news agency Reuters. One of the insiders said, at the end of the four major money might houses National Bank of Greece, Euro Bank, Alpha Bank and Piraeus remain two. According to a second insider Although mergers of banks are necessary. A reconstruction of the industry could also take place over an extended period of time.

       

A restructuring of the industry would probably encounter strong opposition to the government in Athens, because in addition to cost savings, a reduction of jobs is thus connected. One insider said that if a bailout would put together, must immediately be traded. “Cyprus could be a role model.” As part of the reform program for the island nation one of the two major banks had been closed there.

       

The conversion would, according to the insiders begin to strengthen the capital base of most banks. After that, the plans could be worked out in detail. Asked about the political opposition, would take on the such steps, said one of the insiders, there is an interest to have fewer banks. “But I wonder if this is useful in the short term.” A senior Greek banker also said fewer banks also meant less competition.

        
       

BANKS TO SUNDAY CLOSED

       

Would banks closed, the Greek authorities would be responsible. The monitoring lies with the European Central Bank. The Greek Ministry of Finance opinion was first to get to the information. The ECB stated that its Banking Supervision watching the situation closely and am in constant contact with the Greek central bank.

       

The Greek institutions have taken a severe hit because many customers have emptied out of fear of a withdrawal of Greece from the euro zone their accounts. At the moment, all banks will be closed until at least Sunday. At ATMs at most 60 euros can be lifted on the day. The Greek government hopes for a third bailout of the other euro countries and has announced detailed reform proposals for Thursday.

       
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