A new role for the Bank of Greece
Since the launch of the common European currency, the euro, on January 1, 2002, responsibility for monetary policy in the eurozone has rested with the European Central Bank. The until then almighty Bank of Greece that had been using currency depreciation as a way of extricating the country from economic difficulties has been thrown into an existential crisis. How can the bank regain a purpose? First, by cutting its sizable and highly paid staff. Second, with a more systematic and stricter execution of its monitoring duties. For only controls by the Bank of Greece can safeguard borrowers and depositors against the greed of private banks. Moreover, the Bank of Greece is responsible for monitoring the management of insurance funds’ reserves by government-appointed administrators. If checks had been strict and constant, the recent scandals would never have broken out.
