The Greek central bank has concluded
that the country’s banking sector is in reasonable shape with none
of the country’s leading banks having need of emergency

The Bank of Greece’s first Financial Stability
Report, published on 23 June, followed a stress testing exercise
which was applied to the country’s nine largest banks, representing
around an 80 percent market share of the sector’s total assets.

The report said the sector would be able to
withstand “strong shocks”, as defined by the central bank.

In particular, the model assumed that Greek
GDP would decline by 3 percent in 2009-2010, unemployment rise by 4
percent with non-performing loan ratios soaring from 5 percent in
2008 to 12.7 percent in 2010.

Publication of the report came only one week
after the country’s largest bank, National Bank of Greece,
announced a €1.25 billion rights issue, widely viewed by analysts
as opportunistic capital raising from a position of strength,
likely to be followed by a number of its rivals.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.