Greek banks confident of surviving ECB stress tests
Greece’s four largest banks – Piraeus Bank, National Bank, Alpha Bank & Eurobank – which control about 90 per cent of the industry, are ironing out plans on how to deal with capital needs expected to arise from Europe-wide stress tests conducted by the European Central Bank.
Results of the ECB tests will be officially announced on October 26. Subsequently, Greek banks will have to present their strategies which will depend on the exact amount of capital they will need. Reports in the Greek press suggest capital needs could reach 1.5 billion euro.
Banking sources maintain that the lenders will do “everything in their power” to avoid using a capital buffer from the Hellenic Financial Stability Fund which currently stands close to 11.5 billion euro. Reverting to the Fund will trigger the “bail-in” procedure which will have dire consequences for shareholders.
For the full story, please click here.
(Photo: Pedro Moura Pinheiro/flickr.com)