OPINION

No cause for panic over banks

Pressure on Europe and the euro is certainly beginning to mount to dangerous proportions and turning into a tangible threat for banks and their liquidity.

The strain is already apparent in the way in which lending between banks is being tested.

Recent examples of this include that of a bank in Singapore that severed its line of credit with French banks and the abrupt end of negotiations between shareholders and Italian banks on the Milan Stock Exchange because of the wild fluctuations.

The possibility that Greek banks may soon face liquidity problems should not be completely discounted, but the fact is that the government has already secured funding for them from the European Central Bank via the Bank of Greece, as well as having funds especially assigned in order to protect their liquidity.

The protection of Greek banks is a process that is established in the framework of the eurozone and the fact that it has been put into effect should not be any cause for panic.