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The determinants of bank bailouts in Greece: testing the extreme limits of the “Varieties of Financial Capitalism” framework

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  • Kolliopoulos, Athanasios

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 “Varieties of Financial Capitalism” 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 ECB’s lender of last resort tools as a catalyst for bank restructuring.

Suggested Citation

  • Kolliopoulos, Athanasios, 2020. "The determinants of bank bailouts in Greece: testing the extreme limits of the “Varieties of Financial Capitalism” framework," LSE Research Online Documents on Economics 105072, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:105072
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    File URL: http://eprints.lse.ac.uk/105072/
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    References listed on IDEAS

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    1. Haselmann, Rainer & Kick, Thomas & Behn, Markus & Vig, Vikrant, 2015. "The Political Economy of Bank Bailouts," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113082, Verein für Socialpolitik / German Economic Association.
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    5. Paul De Grauwe, 2014. "The Governance of a Fragile Eurozone," World Scientific Book Chapters, in: Exchange Rates and Global Financial Policies, chapter 12, pages 297-320, World Scientific Publishing Co. Pte. Ltd..
    6. Mitchell,Christopher, 2016. "Saving the Market from Itself," Cambridge Books, Cambridge University Press, number 9781107159235.
    7. Braun, Matias & Raddatz, Claudio, 2009. "Banking on politics," Policy Research Working Paper Series 4902, The World Bank.
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    10. Emiliano Grossman & Cornelia Woll, 2014. "Saving the Banks: The Political Economy of Bailouts," Post-Print hal-02186491, HAL.
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    More about this item

    Keywords

    Greek banks; dehellenization; Varieties of Capitalism; bailout; Emergency Liquidity Assistance;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N0 - Economic History - - General

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