How to contain the banking panic?

The banking panic could spread if Greece comes out of the eurozone.

Every day more are those who wonder if their savings are safe on the banks of the countries most affected by the crisis in the eurozone. Is there something they can do the Governments of Europe to contain the banking panic?

The fear of a playpen (limit to transfers and withdrawals of deposits) is evident among many Greeks.

The withdrawal of money has been constant since two years ago, but has accelerated in the last ten days after the parliamentary elections.

In view of the lack of understanding between the parties that support the European rescue and those opposed, increasingly more observers predict that in a matter of weeks Greece will leave the euro.

But the concern does not stop there.

If Greece leaves the euro, Bank panic is could quickly spread more weakened economies of Europe, including Spain and Italy, according to experts.

In Spain, for example, a decrease in the money deposited in banks has produced during the crisis, but experts do not know if attributed to the rise in unemployment or a growing fear.

The own Minister of Economics Spanish, Luis Guindos, tried Tuesday to quell the rumors about a possible playpen by claiming that it is "nonsense".

But also of making statements, what strategy can follow Governments in a delicate situation?

US$ 3.8 billion: fall of money deposited in Greek banks in the last ten days - 2% of the total.

$91,000 Million: fall of money deposited in Greek banks from January 2010 to March 2012.

According to experts consulted by BBC World, the most appropriate response is the coordination of European leaders.

To avoid a banking panic, countries often have a deposit guarantee fund, as it is the case of Spain, to which the clients of the Bank in bankruptcy can go to retrieve their savings, but their resistance is limited.

"They are designed to respond to the bankruptcy of one or two large banks, but not for a massive withdrawal of money", as he told BBC World Spanish Economist Luis Viceira, Harvard professor.

If Greece announces its abandonment of the euro, Greek savers empobrecerían of the overnight, and in other European countries in trouble many may fear their Governments to adopt a similar decision

Before possible capital flight, it believed Viceira, the best brake would be strong EU countries to ensure unlimited liquidity to banks of weak countries.

"Immediately after the Greek announcement, would be crucial an announcement in this regard of the European Central Bank and of several European leaders, including German Chancellor Angela Merkel", says Viceira.

The Harvard Professor stresses that the announcement should be immediate: warns that in the era of banking online, savers enough them minutes to make a transfer.

The Minister of economy Spanish ensures that a playpen is a "meaningless".

The experts consulted agree that it is essential to make the Greek departure announcement by surprise. This is the standard each time that a Government has to communicate a decision with negative consequences for the pockets of citizens.

Thus recommended several of the finalists of the Wolfson Prize, a British ideas competition on the best way that a country to abandon the common currency without causing the disappearance of it.

The winner will be announced in July and will receive US$ 400,000, the second better equipped after the Nobel Prize.

One of the finalists, Jonathan Tepper, from Variant Perception consultant, proposed that the exit is made by surprise in a weekend and that euro banknotes are prints with any brand until they have printed and begin to circulate the new.

Tepper tells BBC world believed that other countries will abandon the euro in the hands of Greece and does not rule out that corralitos despite that in principle, the rules of the European single market prevent it, and that Governments refuse impose.

"Provided that there has been devaluations, Governments have denied that they would do." He spent in Mexico in 1994, in Thailand in 1997, in Russia a year later... ", it exemplifies Tepper.

After the playpen, the Argentine peso lost 75% of its value against the US dollar.

Columbia Professor Xavier Sala-i - Martin also believes that the surprise factor is essential, but believed more likely that Greece is the only one to leave the euro and warns that we must differentiate between two types of controls: the playpen and the barn.

"The corralito was what imposed Argentina in December of 2001, before the devaluation and supposed that savers could only withdraw the equivalent to US$ 250 a week," he told BBC World Professor - Martin.

"This isn't disposable in a country as Spain if there is panic and banks not can give money to all those requesting", says.

"The second part of the playpen, that can happen in Greece but surely not in Spain, is what the Argentines called the barn," he continues.

"Once they have hijacked your money in dollars (the Argentine peso was convertible in US dollars), or in this case in euros a month, back you but not in euros, but in drachmas".

In a matter of months, the value of euro banknotes in Argentine pesos lost 75% of its value to the dollar, impoverishing millions of Argentines.

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