ESM’s Regling warns of Greek banking system collapse without 3rd bailout

The head of the European Stability Mechanism on Thursday warned of a collapse in the Greek banking system if the country does not secure a third bailout, saying this would have consequences for the entire eurozone.

"If everything should fail, then the Greek banking system will collapse," Klaus Regling, head of the European Stability Mechanism (ESM), told German broadcaster ARD, adding that the four biggest Greek banks were systemically relevant.

"If the four biggest systemically relevant banks in a country no longer work, this has grave consequences not just for Greece (…) but also for the whole eurozone."

[Reuters]