When Cards and ATM’s are the only choice: A fortnight in Cyprus with no banking system, nor trust
AbstractThe aim of this article is to offer some insights into the remarkable happenings that occurred in Cyprus during a two-week period (15 March – 28 March 2013) when the country was left with no banking system, subsisting solely on ATMs and cards. At the same time, we aim to provide some new perceptions into the role of ATMs, POSs and credit cards in critical economic situations where a bank run, bank insolvency, or bail-in are likely to happen. We adopt a ‘procedural approach’ and use the sequence of events method towards building up a ‘timeline analysis’. Our discussion suggests that for a number of reasons, the Cypriot bail-in case has breached the confidence of unsecured and secured depositors and investors on a global scale. Also, we suggest that during the preparations of the supposedly unexpected bail-in, which Cypriot MPs firstly rejected and then accepted the Eurogroup and IMF proposal, ATMs, POSs and credit cards have played a pre-arranged role, securing a controlled circulation of money and transactions with restrictions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50646.
Date of creation: Jun 2013
Date of revision:
ATMs; Levy; bank-run; informal economy; cashless society; Cyprus;
Find related papers by JEL classification:
- F6 - International Economics - - Economic Impacts of Globalization
- N2 - Economic History - - Financial Markets and Institutions
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-BAN-2013-10-25 (Banking)
- NEP-MON-2013-10-25 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Panos Pashardes & Alexandros Polycarpou, 2008. "Income Tax Evasion, Inequality and Poverty," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 2(2), pages 37-49, December.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.