Scared Europeans Withdraw Cash from Troubled Banks

May 31, 2012 from VOA News

The European Central Bank has asked financial institutions across Europe to stand behind their struggling counterparts in Greece, Spain, and other countries caught in the euro debt crisis. Banks have an incentive to support their rivals. But will Europe's savers be as patient and keep their money where it is? VOA's Dominic Laurie reports.

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European sovereign debt crisis

The European sovereign debt crisis is an ongoing financial crisis that has made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties. In 1992, members of the European Union signed th... Explore this topic

European Central Bank

The European Central Bank is one of the seven institutions of the European Union listed in the Treaty on European Union. It is the central bank for the euro and administers the monetary policy of the 17 EU member states which constitute the Eurozone, one of the largest currenc... Explore this topic

Bank run

A bank run occurs in a fractional reserve banking system when a large number of customers withdraw their deposits from a financial institution at the same time and either demand cash or transfer those funds into government bonds or precious metals or a safer institution becaus... Explore this topic

Anti-austerity protests

Anti-austerity protests, chiefly taking the form of massive street protests by those affected by them and some of them also involving a greater or lesser degree of militancy, have happened regularly across various countries, especially on the European continent, since the onse... Explore this topic

Economy of Greece

The economy of Greece is the 32nd or 37th largest in the world at $312 or $309 billion by nominal gross domestic product or purchasing power parity respectively, according to World Bank statistics for the fiscal year 2009–2010. Additionally, Greece is the 15th largest economy ... Explore this topic

Economy of Spain

The economy of Spain is the twelfth-largest economy in the world, based on nominal GDP comparisons, and the fifth-largest in Europe. It is regarded as the world's 23th most developed country. Until 2008 the economy of Spain had been regarded as one of the most dynamic within t... Explore this topic

Greece

Greece, officially the Hellenic Republic, is a country in Southeast Europe. According to the 2011 census, Greece's population is around 11 million. Athens is the nation's capital and largest city, its urban area also including Piraeus. Greece is strategically located at the cr... Explore this topic

Spain

Spain, officially the Kingdom of Spain, is a sovereign state and a member of the European Union . It is located on the Iberian Peninsula in southwestern Europe. Its mainland is bordered to the south and east by the Mediterranean Sea except for a small land boundary with Gibral... Explore this topic

Austerity

In economics, austerity describes policies used by governments to reduce budget deficits during adverse economic conditions. These policies can include spending cuts, tax increases, or a mixture of the two. Austerity policies may be attempts to demonstrate governments' liquidi... Explore this topic

Financial institution

In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions ar... Explore this topic

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European sovereign debt crisis

European Central Bank

Bank run

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