HSBC thinks Greek banks will be closed next week -- whatever happens

HSBC this week put out a note for clients looking at what the possible outcomes of Greece’s Sunday July 5 bailout referendum could be.

The key takeaway is that HSBC thinks Greek banks will stay closed, whichever way people vote.

Capital controls, the shutting of banks and limiting how much money citizens can take out of their accounts, were put in place across Greece last weekend after the ruling Syriza party called a snap referendum on whether to accept the Eurogroup’s latest bailout proposals. Banks are already reportedly running out of cash, with Greeks queueing up at ATMs to withdraw their €60-a-day limit.

HSBC thinks the cash shortage and uncertainty that will accompany the aftermath of both a “Yes” and “No” vote means banks will stay closed on Tuesday, the day after the referendum result becomes clear.

You can see HSBC’s take on both scenarios below:

HSBC yes greeceHSBCHSBC’s flowchart of what may happen if Greeks vote ‘Yes’ in Sunday’s referendum.
HSBC no voteHSBCHSBC’s flowchart showing what could happen if Greece votes ‘No’ in the July 5 referendum.

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