BANKIN

G IN
GREECE
BY GROUP 7:
ARCHIT KHEMKA -06
KSHITIZ SANCHETI- 22
MAHEK PATEL -26
NEIL MANDLECHA -31
YASH KUMATH - 54
 • Euro Area is the monetary union of 19 Member
States of the European Union (EU) that have
adopted the euro as their single currency.

HISTORY • Euro System is the monetary authority of the euro

area.
• The Bank of Greece is Greece’s central bank and
was established in 1927
 THE BANK OF GREECE

• The Bank of Greece is the central bank of the country.

• The Bank of Greece is independent. According to the Treaty on the functioning of the
European Union, the Bank of Greece does not seek or take instructions in the
performance of its tasks.
• The institutional framework of the Bank of Greece combines the fundamental
requirement of independence with a legitimate demand for accountability and scrutiny.

• The Bank is accountable to Greek citizens through the Hellenic Parliament.

 Contributes to the maintenance of price stability.

Safeguards the stability of the financial system.

Functions It supervises credit institutions.

of The It oversees payment and settlement systems.

bank of It issues banknotes.

Greece
It provides public information, conducts research and analysis and
produces publications.
It acts as treasurer and fiscal agent of the government.

It manages foreign exchange and foreign reserve assets.

Debt Crisis
• European Commission and the International
Monetary Fund came to Greece's aid with a
110 billion euro bailout
• Furthermore, most of Greece's debt was
owed to German and French banks.
•  So in exchange for these loans, Greece
agreed to austerity measures i.e. - basically
they raised taxes and cut pensions and other
benefits.
• And this kind of worked insofar as Greece did
decrease their budget deficit from 25 billion
euro in 2009 to just 5.2 billion euro in 2011.
• Greece still didn't have a sustainable
economy, so in 2012, the troika loaned them
another 130 billion euro.
Source: Wikipedia
• Half of Greek households relied on pension income since one out of
five Greeks were 65 or older.
• Workers weren’t thrilled paying contributions so seniors can receive
higher pensions. 
• The austerity measures forced the government to cut spending and
increase taxes. They cost 72 billion euros or 40% of GDP.
• As a result, the Greek economy shrank 25%.
• Unemployment rose to 25%, while youth unemployment hit 50%.
• In 2014, a new leftist government was elected in Greece, and they decided
to remove austerity.
• In response to this, the troika stopped sending loan payments
• Basically Greek banks may have only 500 million euro left, which was like
45 euro per person in Greece.
• Many ATMs are out of cash, others can only dispense 10 euro notes
because they're out of 20s.
  Withdrawal of a large amount of deposits
(approximately 80 billion 2009-2011)
due to the crisis, and the uncertainty about future
developments at a European and global level,
CHALLEN  Liquidity problem and high degree of dependence
from the European Central Bank which was the

GES main lender of banks, opposed to the old

borrowing way (through the interbank market)

FACED BY  The significant increase in non-performing loans

and a increase in bad debts in 2012,

BANKS  The large share of obsolete Greek government

bonds in bank portfolios
 Serious recapitalization needs despite aid packages
that have already been provided.
 As of 2017:

Current • Greece ran a budget surplus of 0.8%

• Economy grew by 1.4%
State of the • Unemployment sat at 22%
• One-third of Greece’s population lived below the
Crisis poverty line
• Debt-GDP ratio = 182%
 Current Scenario of the Greek Banking System
• Bank funding, liquidity conditions and confidence in NPL Ratio
the banking sector has improved substantially. 50
45.57
• Capital controls were fully lifted on 1st September 45
41.99
2018. 40
36.65 36.3 36.45

• €12.3 billion of domestic private deposits have 35 33.78

31.9

returned to banks since the start of 2018. 30

25
• Bank credit to non-financial corporations recorded an
23.27

annual growth rate of 2.9% in 2019, which is the 20

14.43
highest since 2010. 15

9.12
• Non-performing loans came down from about €75 10

(45.57%) billion as of 2017, to €58.7 (36.45%) billion in 5

2019. 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: theGlobalEconomy
Thank You!