ECONOMY

Bank liquidity at risk

The dramatic developments in Greece have led to a new wave of bank deposit withdrawals in recent days, at a time when liquidity is crucial.

The local banking system has so far managed to withstand the pressure thanks to dynamic support from the Bank of Greece and the eurosystem, but bank officials warn now that local lenders? strength is limited and the system is running the risk of breaking down.

They add that calm will have to be restored as soon as possible for people to shake off the fear of a financial disaster and a Greek default.

The officials also stress that money is not leaving the country, but is just being withdrawn to households.