How Did the Banking System in Greece Function During the Financial Crisis? A Historical View

Constantinos Challoumis; Nicolaos Eriotis

doi:10.33581/hfbraz45

Authors

Constantinos Challoumis Philips University, Nicosia, Cyprus
Nicolaos Eriotis National and KapodistrianUniversity of Athens, Psachna, Greece

DOI:

https://doi.org/10.33581/hfbraz45

Keywords:

Banking System, Greece, Historical View, Financial Crisis

Abstract

This study examines the intricate dynamics of Greece’s banking sector during the financial crisis that severely affected both the country and the global economy. Guided by two main objectives, it explores the underlying causes that destabilized Greece’s financial institutions and evaluates the broader repercussions of the eurozone crisis on the international stage. The findings highlight how a combination of domestic weaknesses and global pressures triggered a sharp credit contraction and widespread disruption across the Greek banking system. In response, Greek banks engaged in a comprehensive, internationally focused review, drawing on data from major global financial hubs to reduce the crisis’s effects and strengthen resilience. The research also considers the cross-border interconnectedness of financial markets, showing how developments abroad intensified Greece’s economic turmoil. Moreover, the study underscores the humanitarian dimension of financial crises, drawing attention to the social and personal hardships endured, and argues for the importance of empathy in shaping economic recovery. Overall, it stresses the necessity of adopting a global outlook, implementing resilience strategies, and promoting compassionate policies to navigate and overcome financial crises effectively.

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