Saturday April 25, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek banks bracing for dynamic stress tests

By Evgenia Tzortzi

The upcoming stress tests which the European Central Bank (ECB) is to conduct on 128 European banks, including four Greek lenders, are expected to be based on a dynamic model that will also take into account their restructuring plans, according to a manual published by the ECB on Friday.

The blueprint describes how it will incorporate the findings on the quality control of assets in the stress tests, which will evaluate the banks capital adequacy, determining the required amounts of new capital infusions. According to the ECB, the evaluation of banks that have drawn up restructuring plans, including the four Greek ones, will not be limited to the static model which will examine the relevant figures on the basis of the balance sheets for 2013. The simulation tests will take into account the effects of the implementation of the restructuring plans, part of which will be executed after the test results for the 128 European banks are announced, scheduled for early October. The restructuring plans will also be put through similar tests, as they will be evaluated on the basis both of the main and the unfavorable scenario that is, the likelihood that the banks will not fetch the sale prices which they have budgeted for their assets.

The development suits the four Greek banks Piraeus, National, Alpha and Eurobank which aim to limit any capital requirements through the implementation of the restructuring plans that have already begun and are scheduled to run until 2016. Asset sales are seen moderating the required new capital amounts to under 5 billion euros.

It should be noted that the case of Portugals Banco Espirito Santo, which last week reported first-half losses of 3.58 billion euros, will harden the ECBs stance as regards the capital requirements it will prescribe, especially given the criticism it has come under for its regulatory failure in such cases.

An important factor seen having an unfavorable effect on banks is the projected fall in real estate prices, which, according to the worst-case scenario is estimated to total 30 percent in 2014-16.

ECB Vice President Vitor Constancio said, We are making a great effort to ensure that this procedure is strict.

ekathimerini.com , Friday August 8, 2014 (18:58)  
Construction material costs slide anew
Navios taps German shipping opportunities
Govt eyes state company reserves
Thessaly stores likely to remain closed on first Sunday of spring sales
FM warns against a lose-lose situation [Update]
Germany will have to decide whether it wants to support Greece or make an example of the SYRIZA-led administration, Foreign Minister Nikos Kotzias said on Friday. Do they want to support us...
PM tries to appease local ity leaders
Prime Minister Alexis Tsipras met regional governors and mayors over the weekend in a bid to overcome their objections to a decision by the government forcing local authorities to hand over ...
Inside News
SOCCER
Rival soccer fan clashes leave man stabbed
One man was stabbed and several others slightly injured as rival Thessaloniki club fans clashed late on Friday at an event held by Aris supporters. Reports from Greeces second city stated t...
TRACK & FIELD
Grabbing the shoes that have gone a long way
Greek Marathon legend Maria Polyzou is calling on everyone to join her in her charity run at the Dusseldorf Marathon on Sunday, April 26, by bidding for her special shoes she will race in an...
Inside Sports
COMMENTARY
Five years ago
This week marks five years since Greece officially entered a period of crisis when then Prime Minister George Papandreou announced that the country would seek a bailout from the eurozone and...
EDITORIAL
Slippery slope
The extremely divisive language that is currently being used by parliamentary deputies and coalition ministers is both unacceptable and dangerous. It is high time that the tired, old argumen...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. FM warns against a lose-lose situation [Update]
2. PM tries to appease local ity leaders
3. Poll: Large majority of Greeks want compromise with lenders
4. Police rescue 69 migrants from Evros River
5. Thessaloniki nanny denies abusing toddler
6. Cigarette-smuggling ring arrested in northern Greece
more news
Today
This Week
1. Five years ago
2. Greece not playing a game of chicken on debt
3. Slippery slope
4. Police rescue 69 migrants from Evros River
5. Poll: Large majority of Greeks want compromise with lenders
6. Cigarette-smuggling ring arrested in northern Greece
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greek government's popularity takes a hit as talks drag on
3. Putting off payments led to Q1 budget primary surplus
4. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
5. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
6. Europe's collision course with Greece
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.