Bancherul - BANCI / ENGLISH / NBG's CEO Apostolos Tamvakakis: Mergers are a one-way street to restore the credit system

Mergers are the only way to rebuild debt-laden Greece's banking system, the chief executive of the country's biggest lender, National Bank (NBG), said on Thursday, in a boost to consolidation prospects.

Shut out of wholesale funding markets because of the country's sovereign debt crisis, Greek lenders have been urged by the government to explore tie ups to form bigger entities in hopes of breaking the impasse.

"Mergers are a one-way street to restore the credit system," NBG's CEO Apostolos Tamvakakis said in a speech. "The country needs strong banks, which will remain Greek."