The Advent of Zombie Banks

3 Pages Posted: 3 Feb 2019

See all articles by Savvakis C. Savvides

Savvakis C. Savvides

Queen's University - John Deutsch Institute for the Study of Economic Policy

Date Written: January 20, 2019

Abstract

The paper discusses the situation with the state of the heavily indebted economy in Cyprus and role that the remaining banks are playing which is to extract as much as possible from the collateral and guarantees they hold on bad loans. The Government is myopic in their approach which is to trust the banks to bring about an economic recovery. In the author's opinion this policy is more likely to sink the economy into a balance sheet recession.

Keywords: household dissaving, household debt, middle-class squeeze, tax evasion, debt write-offs

JEL Classification: E21, E69, G29, H26, H31

Suggested Citation

Savvides, Savvakis C., The Advent of Zombie Banks (January 20, 2019). Available at SSRN: https://ssrn.com/abstract=3319902 or http://dx.doi.org/10.2139/ssrn.3319902

Savvakis C. Savvides (Contact Author)

Queen's University - John Deutsch Institute for the Study of Economic Policy ( email )

Canada

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