BIS Review 42/2005  5  In concluding, I would like to stress the increasing importance of maintaining financial stability in the increasingly competitive environment of recent years, following the deregulation of the Greek financial system and the liberalization of capital movements. These changes have made the Greek banking system more sensitive to international capital flows, which can sometimes be volatile and unpredictable.
The internationalization of the activities of Greek banking groups, Greece’s entry into the eurozone, and the integration of European financial markets, although generating significant benefits, have also increased the exposure of the Greek financial system to contagion risks.