> This promise, if made credibly, has the effect of preventing bank runs. That, and the depositor's insurance, which is supposed to be for the first 100,000€ i

> This promise, if made credibly, has the effect of preventing bank runs. That, and the depositor's insurance, which is supposed to be for the first 100,000€ in the EU. The insurance is funded and legislated at a country level and the Greek insurance fund is simply way too small. > They have made investments and loans that have not done well, in part because the economy as a whole has not done well. Don't forget bad loans to connected people/companies.