Economy and Finance Minister George Alogoskoufis on Thursday tabled in Parliament a draft bill raising the minimum guarantee on bank saving deposits to 100,000 euros, up from 20,000 euros currently, and for a period of three years.
The minister reiterated that the Greek banking system was safe and solvent and noted that the draft legislation was part of the government's commitment to offer state protection to all savings.
Christos Gortsos, secretary-general of the Hellenic Bank Association, said to a parliament committee considering draft legislation aimed at offering greater protection to borrowers that Greek banks have not exposed themselves to "toxic" bonds, since they had the opportunity to enter a deregulated consumer and housing credit market in Greece as well as to expand in Balkan markets, achieving high growth rates.
"It would be extremely odd to invest in such securities when one has the opportunity for organic profitability through traditional retail banking operations in a geographically expanded market," Gortsos said.
He noted that the Greek banking market was not exposed to collateralized debt obligations (CDOs), nor was it largely exposed to the interbank market, two factors offering additional stability for the system.
Source: Xinhua
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