The licenses of three cooperative banks were revoked on Monday and it causing quite a stir in areas such as Achaiki, Lamia and Limnos-Lesvos. Citizens flooded the banks in fear of losing their deposits forgetting that the government has guaranteed citizens' bank deposits up to the amount of 100,000 euros.In fact all EU member states have a minimum level of guarantee on deposits in the event of a bank;s collapse.
The central bank said on Monday that it decided to liquidate three small cooperative banks which were no longer viable, the third time since October it has wound up small lenders to protect savers. Some may remember that in October, it effectively nationalized Proton Bank and in December it liquidated ailing TBank.
Commercial banks which do business in the areas where the three failed have already expressed interest in taking over their deposits, the Bank of Greece added In accordance with Article 63d of Law 3601/2007, the prescribed procedure which obligates the banks to find a contractor for the deposits and transfer to another bank in the area.
The decision to place the three banks under liquidation was taken due to lack of adequate collateral and their simultaneous inability to join the emergency assistance mechanism that would ensure the protection of their deposits.