European Central Bank (ECB) is Pushing for Greece to Introduce "Capital Controls"

All eyes is on Europena Central Bank decision, According to Frankfurter Allgemeine Zeitung (FAZ), one of Germany's biggest papers, the European Central Bank (ECB) is pushing for Greece to introduce capital controls. If it's true that's a massive deal. so what exactly Capital controls?, Capital controls would mean investors and ordinary bank deposit holders in Greece would have the amount they can remove immediately drastically reduced. This example is such controls were introduced in Cyprus during its 2012 financial crisis.  

As reported from FAZ, Greek banks are weakened by large outflows. Since December Greeks cleared up more than 20 billion from their accounts. it was discussed why the Greek government had not yet introduced capital controls. "The Governing Council and the Governing banking supervisors would be better if there were capital controls to prevent bleeding of the banks," it was said in ECB circles.

"Rising funding and liquidity risks led us to put four Greek banks on Rating Watch Negative on 10 February. This reflected our view that difficult negotiations would prompt further deposit outflows that could trigger capital controls, particularly if access to emergency funding were restricted by the European Central Bank."

The ECB approved a higher cap on potential emergency assistance for Greek banks yesterday, raising the figure from €65 billion to over €68 billion.

source: Frankfurter Allgemeine Zeitung