ECB seen keeping reduced lifeline for Greek banks after vote

Foreign exchange traders at Barclays were in the office from Sunday afternoon to follow developments, and research and sales staff were monitoring the Greek referendum over the weekend, a spokesman for the bank said.

Non-bank financial institutions such as insurance companies, pension funds and investment funds in equity markets are becoming increasingly linked to the wider financial sector, Constancio said in the text of a speech.

The central bankers are also set to discuss increasing the haircut or discount that values the security Greek banks offer in return for funding. If Greeks vote for the proposals of global creditors, then the probability of agreement will increase.

“FT report of a Gk (Greek) Bank Bail In is a malicious rumour that the Head of the Greek Banks Association denied this morning”, he tweeted.

ELA can only be provided against sufficient collateral.

The year saw several spectacular bank crashes in the USA, while cash balances of many European banks that had invested in that market were wiped out.

The banks are fast running out of cash. The only problem is, they should have done this months ago as the capital flight has been massive, the “poor poverty stricken” Greeks transferred 180 billion euros out of the banks already since the election of anti-austerity party Syriza..

The ECB’s policy council has stopped increasing its funding limit ahead of the bailout referendum, which could decide Greece’s future in the euro, but this week decided against reducing it, for fear that it would further destabilise the banks.

European leaders across the spectrum have made it clear that they would interpret the “No” vote as a choice made by the Greek people to leave the 19-nation eurozone. Greece wants a new bailout on easier terms, and a chunk of its debt canceled. In case of the latter, the Greek banking sector would collapse, a move that could lead to the country’s exit from the eurozone.