"The greatest risk is the parallel banking sector in the big developing countries," he said.
Meanwhile, Milosevic set up a parallel banking system, funded by worthless bills printed on state presses.
The parallel banking system was intended to allow the government to create euro liquidity without relying on the ECB.
To be sure there were back-of-the-envelope "plans" for a parallel currency, or a parallel banking system, but such amateurish ideas were of no use at one minute to midnight.
It called for the creation of a parallel banking system as well as the use of i.o.u.s or even a new drachma to replace the euro if Greece's creditors cut funding to banks.
"This would have created a parallel banking system, which would have given us some breathing space, while the banks would have been shut due to the ECB's aggressive policy," Varoufakis was quoted as saying.
These casas de cambio and centros cambiaros serve as a legitimate parallel banking system in Mexico.
There's much to be fascinated with, both in the parallels (banking failures, a large spike in real estate foreclosures and global uncertainty, for example) and the points of contrast (such as the speed and coordination of the response of central banks and finance ministries in 2008).
In a July 16 call with investors at the Official Monetary and Financial Institutions Forum, a financial policy discussion platform, Varoufakis detailed a secret scheme to set up a parallel banking system that "at the drop of a hat" could be converted from the euro to the drachma.
The circuit consisted of self-aerated mechanical cells of 160 m3, arranged in six parallel banks with nine cells each.
Figure 3.25: Signal flow graph for the re-implementation of the example filter as a parallel bank of real first- and second-order digital filter sections.
