A Bank Run on a National Scale

Greece is currently experiencing a bank run on a national scale, as savers pull their funds from Greek banks.

Speigel Online quotes Georgios Provopoulos, the governor of the central bank of Greece:

"In September and October, savings and time deposits fell by a further 13 to 14 billion euros. In the first 10 days of November the decline continued on a large scale."

Adding:

"Our banking system lacks the scope to finance growth."

Will things improve for Greece, and the rest of the Eurozone, after this week's "make or break" European summit this Friday?

Probably not.

Reuters quote a German official, who claims that the German government is "not sure if summit will reach conclusion on using IMF funds in eurozone crisis" and "can't forsee running EFSF and ESM simultaneously". They are "more pessimistic than last week on overall summit deal".

Well then!

Posted in: banks,EU,germany,greece