Troubled by the huge debt Greece is facing now, some of the top banks have yet to make a big decision – nationalize the bank or lose it completely. With the current crisis Greece is facing, it would be utterly hard for banks to grab a strong hold of its shares and depositors. Furthermore, they would also find a hard time getting loans. Critically speaking: who would want to invest in a bank which is almost at its downfall? In addition to that, who would also want to lend money to a bank which isn’t capable of paying its previous debts?
It’s quite saddening actually, how this highly cultured country came to its present unfortunate situation. Poor management strategies may be one of the reasons of the country’s crisis. Nationalizing the banks, given that it would be enough to recapitalize the Greek banking system, is a great risk for the banking companies. It can be a possible step ahead to the revitalization of the Greek economy but it can also weaken the system even more. But who knows? This could make or break it, but really, for the time being, what’s important is to manage the banks well and avoid the causes of the current mishaps, for survival, at least.
Link to news article: Greek banks face nationalization if haircut too severe (09/30/11)