France’s Credit Agricole is in talks with Greece’s Alpha Bank and Eurobank with a view to a possible merger with its Emporiki Bank subsidiary, sources said.

Separately, officials of the Financial Stability Facility are carrying out due diligence in the country’s four largest banks, National, Alpha, Eurobank and Piraeus, which will be recapitalized.

On Friday afternoon, the European Central Bank announced it was suspending the financing of Greek banks with Greek sovereign bonds as collateral until the troika completes its assessment of the country’s progress in the second bailout program. Until then, the banks will be financed exclusively through the Bank of Greece’s Emergency Liquidity Assistance.

reporternet.com