Greek exit threatens eurozone ALM

Attempts to match assets and liabilities on a country-by-country basis could be threatened if Greece leaves the eurozone. Banks fear the imposition of capital controls – the precursor to a redenomination – would spook depositors in other peripheral countries. Joe Rennison reports


Deposit flight from eurozone countries could undermine banks’ attempts to match assets and liabilities on a country-by-country basis – work that has been going on for well over a year, as some institutions have quietly sought to minimise their exposure to eurozone fragmentation and redenomination.

The risks posed by deposit flight have come to the fore in the past two weeks, after inconclusive Greek elections increased the likelihood of the country’s exit from the eurozone – and the possible

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here