HFSF de­mands changes at Na­tional, Pi­raeus

Kathimerini English - - Front Page - YIANNIS PAPADOYIANNIS

The boards of banks Na­tional and Pi­raeus re­quire some sig­nif­i­cant changes to align them­selves with re­cent leg­is­la­tion re­gard­ing their mem­bers, while those at Eurobank and Al­pha only need a few ad­just­ments, Kathimerini un­der­stands.

The as­sess­ment of the com­po­si­tion of the banks’ boards, con­ducted by Spencer Stu­art for the Hel­lenic Fi­nan­cial Sta­bil­ity Fund (HFSF), was de­liv­ered to the coun­try’s sys­temic lenders in con­junc­tion with plans for tack­ling non­per­form­ing loans.

Sources say that Eurobank and Al­pha were found to have the most de­vel­oped cor­po­rate gov­er­nance struc­tures and for that rea­son the HFSF-com­mis­sioned re­port only pro­posed some mi­nor im­prove­ments.

In con­trast, big­ger in­ter­ven­tions were deemed nec­es­sary at Na­tional, whose pres­i­dent, Louka Kat­seli, does not ful­fill all of the law’s re­quire­ments, and Pi­raeus, which is al­ready mak­ing progress in changes to its gov­ern­ing board.

The as­sess­ment re­port was handed to banks a few days af­ter the forced res­ig­na­tion of the HFSF ex­ec­u­tives, which has led to spec­u­la­tion about the changes at the bank boards. It ap­pears that among the rea­sons that led to the sack­ing of the HFSF ad­min­is­tra­tion were banks’ poor re­sults as re­gards manag­ing non­per­form­ing loans and the re­luc­tance of the HFSF to take a more ac­tive role in that di­rec­tion.

In any case, the sit­u­a­tion con­cern­ing NPLs is be­com­ing se­ri­ous for the lenders, as their fail­ure to im­ple­ment their com­mit­ments to the Euro­pean Cen­tral Bank’s Sin­gle Su­per­vi­sory Mech­a­nism could in­cur crit­i­cal con­se­quences for them.

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