In Greece, where the crisis was sovereign-induced, the subsequent rise in sovereign spreads severely challenged banks’ capital adequacy. Greek banks’ capital was effectively wiped out after the haircut on Greek bonds. Recapitalization of banks was only possible through the introduction of the backstop of the Hellenic Financial Stability Fund, the resources of which were provided through official-sector loans to the Greek state.
Nils Bernstein: Statistical challenges due to the economic and financial crisis Speech by Mr Nils Bernstein, Governor of the National Bank of Denmark, at the Nordic Statisticians Meeting, Copenhagen, 12 August 2010. *  *  *  Thank you for inviting me to speak here today. Statistics are the basis for all empirical economic analysis and for our understanding of past events.