State funds were provided by the Hellenic Financial Stability Fund, which had been established with a backstop of € 50 billion for that purpose. Non-viable banks, which were unable to raise private capital, were resolved, using state-of-the-art resolution tools – tools that are now being introduced in other EU countries. Before the crisis, the Greek banking system comprised almost 20 banks.
While a parent bank has the responsibility to make major policy decisions affecting the group, it is crucial that, within this hierarchical structure, important decisions relating to the day-to-day operations of a subsidiary banks are made in the host country, and not referred on a regular basis to either regional or head offices abroad.