Greek banks and the greek crisis : question on a causal relationship still unwansered

Abstract

The purpose of this master’s thesis is to present the connection between the Greek sovereign crisis and the Greek banking crisis. In this context, the causal relationship between Greek banks and the domestic crisis is examined. The study makes a first brief review in the outbreak of the recent global financial crisis which affected drastically the Greek economy. Under this framework, a special focus on the banking strategies is attempted in order to highlight some possible gaps or mistaken estimations in the banks’ policies. Moreover, an extensive report in the funding of the banks in Greece and especially in the funding from the European mechanisms is taking place. Finally, there is a detailed review of the banks’ recapitalisation and restructuring after PSI Plus programme as well as the day forward for the domestic banking environment and economy.