Our European Tour – Part II – Seizing All Bank Accounts Throughout EU wrote:

The EU Commission is deeply concerned what happens when the EU stops its life-support for Eurozone government debt. They are actually considering the way in which multi-day cash disbursements can be practically implemented in order to resolve emergency measures for banks. Their plan is looking at a prolonged banking and financial crisis that would be 20 to 30 days in duration. If government debt crashes with rising rates, then the reserves of banks will decline and this could result in a banking crisis unleashed when the EU stops its life-support program.

The EU Commission will freeze al bank accounts for one week and up to one month if the crisis continues. When Banco Popular went into crisis in Spain, there was a Bankrun which unfolded as a contagion against other banks in Spain. In Greece, accounts were frozen and cash withdrawals were limited for extended periods. This is an ongoing proposition since not all EU members agree. Some countries already have legislation allowing for a total bank freeze such as Germany. Instead of bailouts, we have now move even beyond bail-ins, and into the realm of just total seizure. It is more likely that such a freeze will not preserve banks, but will result in more bank failures.