Study Shows Greeks Still Distrust Banking System

More than half of all Greeks distrust the banking system, according to a study published in Greek daily Kathimerini this week, focusing on capital restrictions in place since June 2015.

According to the study carried out by business management consultants Alvarez & Marsal on behalf of the Bank of Greece, 60 percent of Greek bank account holders said they have little or no confidence in the banking system.

A total of 71 percent of business owners meanwhile, also said they were wary of the banking system and the security of their deposits.

Findings also showed that the level of distrust is lower among wealthier segments of society at 46 percent. In the same category, 58 percent believes a stable banking system is “key” for the return of deposits.

The survey was carried out on a sample of 2,000 individuals, 350 high income depositors, 501 businesses and 18 business shareholders.

The report concludes that confidence in the banking system is low; lifting capital controls will most likely take three or more years; the majority of those polled said they would not withdraw money from banks in the event of capital controls being lifted, but added that they believed there would be a flight of deposits.

A significant percentage considers a stable banking system “key” for the return of deposits; the majority of respondents said they have been affected by capital controls; respondents also said that lifting capital restrictions would mean a return to normalcy.