*****  The banking system up against serious challenges Liquidity support through the government guarantee scheme remains necessary It is a well-known fact that Greek banks did not cause the crisis, contrary to what happened in other countries, but suffered the consequences of the fiscal derailment.
The downgrading of banks’ credit ratings, consequent on the downgrading of the country, meant that banks were shut out from the markets, while they also lost a significant proportion of deposits. Against this background and in order to meet their liquidity needs, banks had recourse to the liquidity support measures adopted by the Greek government including a State guarantee scheme.