Greek cenbank shuts three small local banks

Greece’s central bank said on Monday it had liquidated three small cooperative banks which were no longer viable, the third time since October it has wound up small lenders to protect savers.

In October, it effectively nationalized Proton Bank and in December it liquidated ailing TBank

The three lenders liquidated on Monday, Achaiki, Lamias and Lesvou-Limnou, had operations with between three and five branches each, according to banking sources.

“The license of the three cooperative banks was revoked and they were put in special liquidation,» the central bank said in a statement.

Commercial banks which do business in the areas where the three failed lenders operated have already expressed interest in taking over their deposits, the Bank of Greece said.

Greece’s sovereign debt crisis has wreaked havoc with the country’s banking system. The European Union and the International Monetary Fund are expected to disburse between 23 billion and 40 billion euros ($52.68 billion) to recapitalize Greek banks as part of the country’s second bailout. [Reuters]

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