Bonnici says value of Greek bank's collateral for ELA depends on referendum decision
No matter the result of the referendum, Greek banks are in a terrible spot. The capital controls this week will ensure that no one keeps their money in a bank.
Argentina had capital controls and forced devaluation in 2001. That was worse than what will happen to Greek depositors but people there still don't trust banks and would rather keep their cash at home. The entire basis of banking systems is trust that you can get your money back when you want it. When that bond is broken, it can take a generation to repair.
