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The Determinants of Bank Bailouts in Greece: testing the extreme limits of the ÒVarieties of Financial CapitalismÓ framework

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  • Athanasios Kolliopoulos

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 ÒVarieties of Financial CapitalismÓ 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 ECBÕs lender of last resort tools as a catalyst for bank restructuring.

Suggested Citation

  • 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.
    • Handle: RePEc:hel:greese:148
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    File URL: http://www.lse.ac.uk/Hellenic-Observatory/Assets/Documents/Publications/GreeSE-Papers/GreeSE-No148.pdf
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    References listed on IDEAS

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    Keywords

    Greek banks; ÒdehellenizationÓ; Varieties of Capitalism; bailout; Emergency Liquidity Assistance;
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