Banks con­fi­dent they could cope with a rise in bad loans

Kathimerini English - - Front Page - YIAN­NIS PAPADOYIANNIS

Bank­ing of­fi­cials be­lieve that the Greek credit sys­tem has more than ad­e­quate strength to with­stand the on­go­ing eco­nomic cri­sis, as it could ab­sorb an in­crease in non­per­form­ing loans of up to 50 per­cent, ac­cord­ing to a re­port by Ger­man bank Beren­berg.

Dur­ing a re­cent visit to Athens, the Ger­man lender’s of­fi­cials met with rep­re­sen­ta­tives of the coun­try’s four sys­temic banks, who told them that the blow from an in­crease in pro­vi­sions could be off­set by the strong cap­i­tal base lo­cal lenders have fol­low­ing their re­cap­i­tal­iza­tions, as well as the ex­pected prof­its be­fore pro­vi­sions in the next three years.

The Beren­berg re­port warns that ex­ist­ing bank stake­hold­ers may be in for a de­val­u­a­tion of their hold­ings should the Black­Rock So­lu­tions stress tests show that the Greek credit sec­tor re­quires an ad­di­tional cap­i­tal boost.

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