National Bank needs to be transformed, chief executive Pavlos Mylonas told Kathimerini in an interview, during which he said the historic lender is turning into “a modern bank that will respond to the new challenges.”
The “transformation journey,” as he described it, will have to entail the reduction of the group’s staff – dictated by the need to reduce the cost of the bank’s operation – and the branch network – a result of the changes in and simplification of transactions. He says that NBG will rid itself of the attitudes and behaviors associated with the ugly side of the public sector.
The main pillar of the transformation plan, Mylonas says, is the reduction of bad loans and the government proposal for the change to the Katseli law, which will be the catalyst for the efficient management of the loan portfolio. He argues that this effort must be supported by the promotion of the two schemes drawn up by the Hellenic Financial Stability Fund and the Bank of Greece, which, according to the NBG CEO, “can be implemented in combination.”
The National Bank chief does not rule out the prospect of further concentration in the Greek credit system, but that concerns “the distant future,” he added.