Financial stability was safeguarded by the bank of Greece with the support of the government During the crisis, Greek banks were cut off from international markets and, until June 2012, experienced an unprecedented outflow of deposits, equivalent to one third of the deposit base. In response, they resorted increasingly to short-term financing from the Eurosystem.
At the height of the crisis in June 2012, total central bank financing to credit institutions came close to € billion. In addition, although Greek banks entered the crisis with satisfactory capital adequacy ratios, the heavy losses they suffered from 2010 onwards and especially the impact of Private Sector Involvement (PSI) resulted in nearly all banks being faced with a capital shortage at end-2011.