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.

Willibald Cernko, the CEO of Bank Austria, said that 2012 was tough year for the banking sector as the Bank has recorded net losses of _ 676m.

However, the Central and Eastern Europe (CEE) has showed profits of six percent before tax of _ 1.712bn as compared to 2011. Austria encountered economic slowdown in the previous years and had a big impact on customer business, asserted Cernko.

Close on the heels of Germany's second-ranking lender Commerzbank's Friday announcement of a 716 million euros ($954 million) loss for the 2012 fourth quarter, the bank's CEO Martin Blessing said that he is neither asking for a bonus after a year of meagre profits, nor any dividend for shareholders.

It seems that everything is going well with Spain, since the time the European Central Bank has pledged that they will support the debt ridden countries. It is the time, when Spain's borrowing cost also decline, which was at its peak in the summer.