Thursday October 23, 2014 Search
Weather | Athens
22o C
16o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Stress tests begin for lenders

 Banks expect results of the exercise after mid-October, though meetings with ECB should provide good idea

By Yiannis Papadoyiannis

Crunch time has arrived for the Greek credit sector as the European Central Bank and the European Banking Authority began on Monday the much-anticipated stress tests on all major lenders in the eurozone whose purpose is to examine the consequences of any possible deterioration in economic conditions on loan portfolios.

Banking sources say that the heads of the ECB and the EBA will hold meetings with bank officials after the second week of September to discuss methodology issues and present some of their findings, but without telling them the results. After the meetings the banks will have a good idea of the ECB’s intentions and strategy and even of the exercise’s possible outcome.

The decisive point that may well determine if banks need additional capital is whether the ECB test banks based on their dynamic elements – i.e. the forecast concerning the course of their main figures and the creation of internal capital through asset sales – or on their static picture from the end of 2013.

EU banks had until December 31, 2013 to have their restructuring plans approved by the European Commission for them to be considered for the stress tests, but the Greek lenders only had theirs approved between April and July 2014. However the ECB has said it will factor them in regardless, although it remains unclear to what extent the dynamic elements will be taken into consideration.

Sources say that the ECB will examine the level of progress and compliance of each bank to the Commission’s requirements, and that that will determine whether the dynamic or static picture will be used.

According to the ECB timetable, the final results of the stress tests will not be issued before mid-October, with the most likely date being Friday, October 17, according to analysts. Banks will find out the results just before their publication, and then will have two weeks to announce how they plan to cover any capital requirements.

ekathimerini.com , Monday September 1, 2014 (22:30)  
Arrivals show increase in January-June 2014 period
TBEX brings together 800 travel bloggers in Athens
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Cyprus president to sit out EU summit due to high blood pressure
Cyprus President Nicos Anastasiades was admitted to a hospital in Brussels on Thursday morning following repeated nosebleeds caused by high blood pressure. He was discharged a few hours late...
Strong winds hamper sea travel
Winds reching 7 and 8 Beaufort led to disruptions in Saronic Gulf sea travel services from and to Piraeus, the Greek coast guard said on Thursday morning. Services were also disrupted on the...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Arrivals show increase in January-June 2014 period
2. Cyprus president to sit out EU summit due to high blood pressure
3. Strong winds hamper sea travel
4. TBEX brings together 800 travel bloggers in Athens
5. Roberto´s heroics make Kasami´s goal count
6. Athens weighs its LNG and CNG options
more news
Today
This Week
1. TBEX brings together 800 travel bloggers in Athens
2. Strong winds hamper sea travel
3. Cyprus president to sit out EU summit due to high blood pressure
4. Arrivals show increase in January-June 2014 period
5. At least 11 banks to fail European stress tests, three in Greece, report says
6. Cyprus to block Turkey's EU talks after EEZ violation
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.