Safeguarding the Stability of the Greek Banking System Amidst the Fiscal Crisis in the Euro Area: Arrangements Before and After the Establishment of the European Banking Union

The present paper examines the impact of the current fiscal crisis in the euro area on the Greek banking system and the institutional, regulatory and supervisory measures adopted to preserve its stability. It is divided into two parts. The first part deals with the differentiated impact of the recent (2007–2009) international financial crisis and the current fiscal crisis in the euro area on the Greek banking system, and the measures adopted to safeguard its stability from 2008 (amidst the recent international financial crisis) until the establishment of the European Banking Union in 2014 (amidst the current fiscal crisis in the euro area). The second part overviews the main elements of the current institutional, regulatory and supervisory framework governing banking stability in Greece in the era of the European Banking Union and its implementation during the last 2 years after the establishment of the Single Supervisory Mechanism, the Single Resolution Mechanism and the Single Resolution Fund. The paper concludes with some remarks on the current challenges of the Greek banking system, the functioning of the Single Supervisory Mechanism and the need for a ‘regulatory pause’.