Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Local banks eager to have their restructuring plans approved

By Yiannis Papadoyiannis

Domestic banks are in a race against time to have their restructuring plans approved as soon as possible so they can secure their participation in the European stress tests on the best possible terms.

Sources say that the country’s four systemic lenders, as well as other European banks, are trying to convince the European Banking Authority (EBA) to accept their revised restructuring plans and have their stress tests based on them. According to the rules, any European banks that have had their their restructuring plans approved by the European Commission will be tested according to the dynamic model, while those without approved plans will be tested according to the static model.

The dynamic model will have the 2013 financial report as its starting point, although the authorities responsible for the assessment of banks’ final capital requirements will factor in asset sales, share capital increases, deleveraging and any other actions included in restructuring plans.

However, in the case of those tested according to the static model, the authorities will base their projections to establish the capital strength of each bank on its 2013 financial report alone, without taking any restructuring actions into account.

As things stand, it appears Greece’s banks will be judged on the static model. However, after the share capital increases and the significant actions that their restructuring plans contain, Greek lenders are keen to have their plans approved by the authorities. Their applications have already been submitted and will be examined in the coming days.

Bank officials have told Kathimerini that if the dynamic model is used for the assessment of domestic lenders, they will be set to benefit greatly. They point to the strengthening of the systemic banks to the tune of 8.3 billion euros through the recent share capital increases.

According to the stress tests conducted by BlackRock Solutions late last year for the Bank of Greece, domestic banks’ capital requirements were estimated at 6.38 billion euros according to the baseline scenario used for the exercise. Bank officials had deemed that test as particularly strict, adding that the actual developments in the local economy will lead to a much more favorable picture in Greece’s credit sector.

ekathimerini.com , Wednesday June 4, 2014 (22:53)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.