IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/105072.html
   My bibliography  Save this paper

The determinants of bank bailouts in Greece: testing the extreme limits of the “Varieties of Financial Capitalism” framework

Author

Listed:
  • Kolliopoulos, Athanasios

Abstract

This article explores the determinants of the three bank bailouts in Greece during the recent financial crisis. Building on literature from comparative studies applying the “Varieties of Financial Capitalism” framework, the paper analyzes the factors contributing to bank rescue package design. Although this analysis verifies the institutionalist hypotheses in the case of the two fist recapitalizations, the article attempts to explain the significant changes in the domestic banking system and the transfer of control of systemic banks to foreign hands, which were caused after the third recapitalization in 2015. Interpreting such an exceptional case, we focus on the ECB’s lender of last resort tools as a catalyst for bank restructuring.

Suggested Citation

  • Kolliopoulos, Athanasios, 2020. "The determinants of bank bailouts in Greece: testing the extreme limits of the “Varieties of Financial Capitalism” framework," LSE Research Online Documents on Economics 105072, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:105072
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/105072/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Haselmann, Rainer & Kick, Thomas & Behn, Markus & Vig, Vikrant, 2015. "The Political Economy of Bank Bailouts," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113082, Verein für Socialpolitik / German Economic Association.
    2. Mr. Luc Laeven & Mr. Fabian Valencia, 2010. "Resolution of Banking Crises: The Good, the Bad, and the Ugly," IMF Working Papers 2010/146, International Monetary Fund.
    3. repec:hal:spmain:info:hdl:2441/5adcidkke9omt0s9p8s03ic8p is not listed on IDEAS
    4. Markus K. Brunnermeier & Harold James & Jean-Pierre Landau, 2016. "The Euro and the Battle of Ideas," Economics Books, Princeton University Press, edition 1, number 10828.
    5. Paul De Grauwe, 2014. "The Governance of a Fragile Eurozone," World Scientific Book Chapters, in: Exchange Rates and Global Financial Policies, chapter 12, pages 297-320, World Scientific Publishing Co. Pte. Ltd..
    6. Mitchell,Christopher, 2016. "Saving the Market from Itself," Cambridge Books, Cambridge University Press, number 9781107159235, October.
    7. Braun, Matias & Raddatz, Claudio, 2009. "Banking on politics," Policy Research Working Paper Series 4902, The World Bank.
    8. Schneider, Sebastian, 2014. "Varieties of capitalism, varieties of crisis response Bank bailouts in comparative perspective," PIPE - Papers on International Political Economy 21/2014, Free University Berlin, Center for International Political Economy.
    9. Streeck, Wolfgang, 2010. "E pluribus unum? Varieties and commonalities of capitalism," MPIfG Discussion Paper 10/12, Max Planck Institute for the Study of Societies.
    10. Emiliano Grossman & Cornelia Woll, 2014. "Saving the Banks: The Political Economy of Bailouts," Post-Print hal-02186491, HAL.
    11. Hall, Peter A. & Gingerich, Daniel W., 2009. "Varieties of Capitalism and Institutional Complementarities in the Political Economy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 39(3), pages 449-482, July.
    12. Matthias Thiemann, 2014. "In the Shadow of Basel: How Competitive Politics Bred the Crisis," Review of International Political Economy, Taylor & Francis Journals, vol. 21(6), pages 1203-1239, December.
    13. Pepper D. Culpepper & Raphael Reinke, 2014. "Structural Power and Bank Bailouts in the United Kingdom and the United States," Politics & Society, , vol. 42(4), pages 427-454, December.
    14. Anke Hassel, 2014. "Adjustments in the Eurozone: Varieties of Capitalism and the Crisis in Southern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 76, European Institute, LSE.
    15. Anke Hassel, 2014. "Adjustments in the Eurozone: Varieties of Capitalism and the Crisis in Southern Europe," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athanasios Kolliopoulos, 2020. "The Determinants of Bank Bailouts in Greece: testing the extreme limits of the ÒVarieties of Financial CapitalismÓ framework," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 148, Hellenic Observatory, LSE.
    2. Denise Currie & Paul Teague, 2017. "The eurozone crisis, German hegemony and labour market reform in the GIPS countries," Industrial Relations Journal, Wiley Blackwell, vol. 48(2), pages 154-173, March.
    3. Schneider, Sebastian, 2014. "Varieties of capitalism, varieties of crisis response Bank bailouts in comparative perspective," PIPE - Papers on International Political Economy 21/2014, Free University Berlin, Center for International Political Economy.
    4. Engelbert Stockhammer & Syed Mohib Ali, 2018. "Varieties of Capitalism and post-Keynesian economics on Euro crisis," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 44(3), pages 349-370.
    5. repec:spo:wpmain:info:hdl:2441/5adcidkke9omt0s9p8s03ic8p is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/5adcidkke9omt0s9p8s03ic8p is not listed on IDEAS
    7. Emiliano Grossman & Cornelia Woll, 2014. "Saving the Banks: The Political Economy of Bailouts," Post-Print hal-02186491, HAL.
    8. Reto Bürgisser & Donato Di Carlo, 2023. "Blessing or Curse? The Rise of Tourism‐Led Growth in Europe's Southern Periphery," Journal of Common Market Studies, Wiley Blackwell, vol. 61(1), pages 236-258, January.
    9. Marta Silva & João Carlos Lopes, 2020. "The structural adjustment of the Portuguese economy in the context of the economic reform of the Eurozone," Working Papers REM 2020/0143, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    10. Jakub Borowski & Adam Czerniak & Beáta Farkas, 2023. "Diverse Models of Capitalism and Synchronization of Business Cycles," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(4), pages 681-712, December.
    11. Sebastian Blesse & Pierre C Boyer & Friedrich Heinemann & Eckhard Janeba & Anasuya Raj, 2019. "European Monetary Union reform preferences of French and German parliamentarians," European Union Politics, , vol. 20(3), pages 406-424, September.
    12. Thiemann Matthias, 2016. "The Power of Inaction or Elite Failure? A Comment on Woll’s “The Power of Inaction”," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 6(1), pages 31-45, March.
    13. Thomas Prosser, 2017. "Explaining Implementation through Varieties of Capitalism Theory: The Case of the Telework and Work-related Stress Agreements," Journal of Common Market Studies, Wiley Blackwell, vol. 55(4), pages 889-908, July.
    14. Messori, Marcello & Micossi, Stefano, 2018. "Counterproductive Proposals on Euro Area Reform by French and German Economists," CEPS Papers 13438, Centre for European Policy Studies.
    15. Niamh Hardiman & Saliha Metinsoy, 2017. "How do ideas shape national preferences? The Financial Transaction Tax in Ireland," Open Access publications 10197/9205, Research Repository, University College Dublin.
    16. Antonin Rusek, 2014. "Eurozone’s Future: Convergence, Restructuring or “Muddling Through”?," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(3), pages 45-56.
    17. DIMITRIOU Georgia & METAXAS Theodore, 2018. "Mapping Economic Crisis In South Europe: Greece, Portugal And Cyprus," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 18(2), pages 41-54.
    18. Pompeo Della Posta & Roberto Tamborini, 2021. "The Existential Trilemma of EMU in a Model of Fiscal Target Zone," EconPol Working Paper 66, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. Federico Maria Ferrara & Jörg Haas & Andrew Peterson & Thomas Sattler, 2020. "Exports vs. Investment: How Public Discourse Shapes Support for External Imbalances ," Working Papers hal-02569351, HAL.
    20. Athanasios Orphanides, 2020. "The fiscal–monetary policy mix in the euro area: challenges at the zero lower bound," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 35(103), pages 461-517.
    21. Krahé, Max, 2023. "Italiens Stagnation verstehen," Papers 277907, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    22. Lucia Quaglia & Aneta Spendzharova, 2017. "Post‐crisis reforms in banking: Regulators at the interface between domestic and international governance," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 422-437, December.

    More about this item

    Keywords

    Greek banks; dehellenization; Varieties of Capitalism; bailout; Emergency Liquidity Assistance;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N0 - Economic History - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:105072. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.