Establishment and Operation

Credit institutions' authorisation procedure is set out in Law 3601/2007 (Articles 5, 6, 7 and 24). The institutional framework on credit institutions' authorisation is laid down in Bank of Greece Governor's Act 2526/2003 and BCC decision 211/1/2005.

Greek credit institutions may be established and operate only in the form of a société anonyme and, by way of exception, in the form of a pure credit cooperative referred to in Law 1667/86. A credit institution is an undertaking whose business is to receive deposits or other repayable funds from the public and grant loans or other credit for its own account. Individuals or undertakings that are not credit institutions are prohibited from carrying out the business of taking deposits or other repayable funds from the public, while carrying out the business of granting loans or credit to the public is subject to authorisation by the Bank of Greece.

In the event that such business is carried out without the required authorisation of the Bank of Greece, the envisaged penalties (imprisonment and/or a pecuniary penalty) are imposed.

Bank of Greece Governor's Act 2526/8 December 2003 "Codification and supplementation of the provisions of Bank of Greece Governor’s Act 1379/24 October 1988, as currently in force, on the terms and conditions of authorisation of a credit institution in Greece"

Bank of Greece Governor's Act 2526/8 December 2003 codifies and supplements the provisions on the procedure for authorisation of a credit institution in Greece by the Bank of Greece, as well as the establishment in Greece of branches of credit institutions based in the European Economic Area (EEA) or third countries. This Act sets out, in a single text, the relevant obligations of all parties concerned, in particular those wishing either to participate in the share capital or assume managerial duties or other official posts in existing or future credit institutions and expands the scope of disclosures to the Bank of Greece to include further information on major shareholders and officers, such as on the duties of risk management and internal control Committees, the criteria for selecting persons cooperating with the credit institution etc. The persons concerned must fill in and submit a specific questionnaire.

Banking and Credit Committee Decision 211/1/5 December 2005: "Complementation of Bank of Greece Governor's Act 2526/8 December 2003 with terms and conditions for authorising credit institutions based abroad to establish and operate Representative Offices in Greece"

Banking and Credit Commission Decision 211/1/5 December 2005 complemented Bank of Greece Governor's Act 2526/8 December 2003 with terms and conditions for authorising credit institutions based abroad to establish and operate Representative Offices in Greece, i.e. credit institutions' business units engaged exclusively in all or any of the following activities:

i) collecting and providing financial and commercial information;

ii) taking initiatives for the development of cooperation between the represented credit institution and Greek firms in financial activities, as well as preparing studies for the promotion of business activities by Greek and foreign firms;

iii) representing the credit institution's interests in Greece; and

iv) advertising and promoting the products and services of credit institutions that provide services in Greece.

It should be noted that the Representative Office is not authorised to undertake contractual commitments on behalf of the credit institution or receive from, or pay money to, customers of the credit institution in Greece in connection with any operations subject to supervision.