Wednesday May 6, 2015 Search
Weather | Athens
14o C
09o 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)  
Sklavenitis announces absorption of rival Veropoulos
Hopes of a GDP rebound evaporate
Moody´s downgrades Greek bank products, OTE rating
Greek 10-year yields rise 51 basis points
ND, PASOK snub vote on civil service rehirings
New Democracy and PASOK walked out of Parliament on Tuesday before MPs passed the government’s proposed changes to the public administration, including the rehiring of civil servants sacked ...
Thessaloniki´s Boutaris angers other mayors by transferring cash
Thessaloniki Mayor Yiannis Boutaris believes that the government’s behavior is “completely crazy” but he has nevertheless led the way among peers in transferring his municipality’s cash rese...
Inside News
TRACK & FIELD
Over 18,000 runners participate in the Athens Half Marathon
The 4th Athens Half Marathon was an unqualified organizing and sporting success on Sunday, as thousands of runners joined in the race of the 21-kilometers and the 3k and 5k runs in the capit...
SOCCER
Six teams to fight to avoid the last relegation spot
Panthrakikos was the biggest winner of the penultimate round of Super League games on Sunday through its victory at Veria, on the day that Olympiakos partied for its fifth consecutive title....
Inside Sports
COMMENTARY
Empty admissions of fault
News that the International Monetary Fund’s managing director, Christine Lagarde, has ordered a probe into who bears responsibility for the failure of the Greek program during the 2010-12 pe...
EDITORIAL
No more division
Greece will experience some serious turbulence in the days and weeks ahead as it faces several key dates that will determine its fate. It is extremely unlikely that the country will survive ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Sklavenitis announces absorption of rival Veropoulos
2. ND, PASOK snub vote on civil service rehirings
3. Hopes of a GDP rebound evaporate
4. Thessaloniki´s Boutaris angers other mayors by transferring cash
5. Greece points finger of blame at creditors
6. Moody´s downgrades Greek bank products, OTE rating
more news
Today
This Week
1. Empty admissions of fault
2. Most Greeks want euro even with new bailout deal
3. Dozens of migrants rescued at sea
4. OTE vies for control of Albtelecom
5. No more division
6. Greeks bet 5.9 billion euros on games of chance last year
Today
This Week
1. The Good, the Bad and the Ugly
2. Greece’s decade-long relationship with Merkel
3. Greek decision to exit euro would be disastrous for Greece
4. Varoufakis attacked by anarchists while dining in Athens
5. No need to widen the rift
6. Empty admissions of fault
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.