Financial and Banking System in Greece


Financial and Banking System in Greece
The banking system of Greece at its initial phase was formed with the direct involvement of the state. In 1828. A National Financial Bank of Greece to resolve a fiscal and credit problems that have arisen in connection with the liberation war for independence. The history of the modern banking system of Greece refers to 20gg. last century, when created or are being developed such large Greek banks like Bank of Attika, General Hellenic Bank, Bank of Central Greece, which became the core of the financial and credit system of the country.

In the development of the banking system of Greece in 1970 90gg. is to improve the mechanism of monetary regulation, primarily by the Bank of Greece. Establishes a fixed finite growth rates of inflation and GDP, arrived at through strict control over liquidity and objective information about the processes occurring in the field of monetary authorities of the country. Implemented to strengthen and streamline the regulatory framework of monetary regulation. Such a policy would ensure the flexibility and autonomy of the exchange rate, which was regarded as a decisive factor in achieving macroeconomic fundamentals.

In 1981. Greece joined the EU in the financial and banking system, there have been structural changes in Greece: Bank of Greece in this period imposes restrictions on deposits in national currency for non-resident foreigners, the foreign currency debt of commercial banks to obtain foreign loans by national companies in order to redirect them to domestic loans, a policy of stable exchange rate.

Accession of Greece to the Economic and Monetary Union 01.01.2001 and integration in the single currency zone to create real conditions for the transition from a closed economy to an open type of protectionist social market economy.

A special place in the banking system of the country is the Bank of Greece, with responsibilities for the development and implementation of monetary policy to achieve price stability and support for the state's economic policy. Highlights the state-controlled Greek banks: National Bank of Greece and Emporiki Bank of Greece, private - Alpha Bank and Piraeus Bank, and Eurobank Ergasias (with foreign participation).

Due to changes in the banking and credit system of the EU is actively structural changes in the banking system of Greece. A program of privatization of state shares in public-Commercial Bank of Greece, as well as forming new banking legislation that meets the requirements of the EU financial system.

No comments:

Post a Comment