Greece can takeover the local units of Cypriot banks in a bid to protect its struggling banking system from the Cyprus financial crisis, a senior government official revealed.

The Greek branches of Cypriot banks remained closed on Tuesday and Wednesday, and will also remain closed on Thursday and Friday.

There are three Cypriot banks operating in Greece, viz. Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank. These three banks have nearly a 10 per cent share of Greece's banking market.

Speaking on the condition of anonymity, a senior government official said, "The Greek government is ready to conclude the transfer of Cypriot bank operations in the country to Greek banks in a few hours."

The official claimed that two of the country's biggest banks, viz. Alpha Bank and Piraeus Bank, had already expressed interest in absorbing the Cypriot banks' operations in Greece.

Previously, Greece's Finance Minister Yannis Stournaras said that the Greek government was taking steps to minimize the impact of the Cyprus financial crisis, and that there was a Plan B to tackle the issue.

Stournaras also assured that all deposits in Cypriot banks' Greek branches, as well as other banks in the country were safe.