Report: Greek banks sturdily positioned

Greece’s banks are on sturdy capital ground, and if any capital injections are needed, the sum should not exceed 3.5 billion euros, Morgan Stanley notes in a new report.

Morgan Stanley analysts also stated that recent share price corrections in the local banking sector have created investment opportunities.

The favorable news comes just a day after Greek banking officials were forced to deny reports claiming capital injections would be needed.

The banking sector’s index has gained 5.8 percent over the past three trading sessions.

The Morgan Stanley report says that Greek banks’ capital reserves appear sufficient ahead of a new round of stress tests scheduled to be conducted on all European Union banks in October.

Greek banks have been recapitalized and now possess strong capital adequacy ratios ranging between 16 and 19 percent, the report notes.