Q&A: Could Greece experience a bank run?

Is Greece's banking system headed towards collapse?

Earlier this week, Greek President Karolos Papoulias said that about 800m euros ($1.01bn) were recently withdrawn from Greek banks. "The strength of banks is very weak right now," said Papoulias, according to the Wall Street Journal.

The withdrawals follow the news that Greece's political parties were unable to form a government after elections held on May 6, leading to the installation of a caretaker administration on Thursday. Another round of elections to be held in June may result in a government opposed to Greece's financial bailout by the European Union and International Monetary Fund.

If Greece does not adhere to the bailout's conditions, the country may be forced to leave the euro, say analysts. Hence some Greeks' desire to withdraw their deposits in euros, before the introduction of a new currency likely to be worth less.

Al Jazeera's Sam Bollier spoke with Allister Heath, the editor of London-based business newspaper City AM, about the likelihood of a bank run in Greece and the possible consequences.

Read more: AlJazeera.com, 18 May 2012