Greece's Influence on the European Markets

The central bank in Greece, officially known as the Bank of Greece, began operations on May 14, 1928. In 2001, Greece became part of the Eurozone, which now consists of 17 nations and recognizes the monetary policies of the European Central Bank. “Greece initially failed to meet the economic requirements but was admitted in January 2001 after overhauling its economy” ("euro (currency unit)," 2011). Together, the central banks of the 17 nations and the European Central Bank make up the Eurosystem, whose goal is to monitor and influence stability throughout the Eurozone financial markets. On a larger scale, the Bank of Greece and the other banks of the Eurosystem belong to European System of Central Banks which offers representation for the 10 other member states whose central banks are part of the European Union but who have chosen not to adopt the euro.

Prior to the Bank of Greece’s inception, banknotes were issued by the National Bank of Greece, the oldest commercial bank in Greece. As the “largest financial group in Greece,” the National Bank of Greece provides “a full range of financial products and services for individuals, consumers, small and medium-sized enterprises, and large corporations” ("Company spotlight: the," 2011). The bank handles all lines of business including retail, corporate and investment banking as well as insurance services and “accounts of about one-third of the country’s banking business” ("Business in Athens," 2009). Overall, there are “41 commercial banks, 3 investments banks, 1 specialized bank (Agricultural Bank of Greece), 7 local cooperative banks, the Postal Savings Banks and the Consignments and Loans Bank” ("Business in Athens," 2009). Historically, many of the commercial banks in Greece...

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