Saturday November 29, 2014 Search
Weather | Athens
16o C
10o 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)  
Q3 growth was bigger than thought
Who will pay for the states ADMIE stake?
Christmas budgets slashed due to higher taxes, healthcare costs
Finance Ministry inundated with applications for debt settlement
Venizelos extends invite to Turkey at start of visit
Foreign Minister Evangelos Venizelos arrived in Ankara Friday night for two days of talks. Ahead of his visit he sought to make it clear that Greece is prepared to discuss maritime issues wi...
Vatopedi trial for 14 suspects
The Supreme Court decided Friday that 14 people should stand trial for the notorious property swap between the Vatopedi Monastery and the state six years ago. Those who will face charges of ...
Inside News
BASKETBALL
One more emphatic win sees Panathinaikos make top 16
Panathinaikos has mathematically qualified to the top 16 of the Euroleague after another emphatic home win, this time against Bayern Munich, with an 87-72 score on Friday. Given the changes ...
SOCCER
PAOK is one win from Europa Leagues last 32
A late brace by Stefanos Athanasiadis gifted PAOK a precious win at Dynamo Minsk on Thursday, meaning that the Thessaloniki team is one win away from graduating from the group stage of the E...
Inside Sports
COMMENTARY
Change of US president wont mean change of foreign policy
Americans have again voted for change in Washington as opposition Republicans take control of both houses of the US Congress. As attention now turns to the 2016 presidential race, it's time ...
COMMENTARY
The presidential election paradox
A few days ago, speaking with a visiting colleague who neither works in Europe nor covers events here, I suddenly felt how much we Greeks take for granted some things that should have worrie...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. One more emphatic win sees Panathinaikos make top 16
2. Venizelos extends invite to Turkey at start of visit
3. Vatopedi trial for 14 suspects
4. New proposals on way to troika
5. Cabbie who carried shooter claims he was threatened
6. Govt urged to allow Syrian refugees to move on
more news
Today
This Week
1. Change of US president won't mean change of foreign policy
2. Greek economy expands 0.7 pct q/q in Q3
3. Child molester suspect photo released by police
4. Lebanese FM: Cyprus may be jihadi transit point
5. Athens water supply 9-month profit falls 45 pct on lower charges
6. Armed man arrested on Thessaloniki campus
Today
This Week
1. Give Greece a chance
2. Extremism from a bygone era
3. Scientists expand excavation of ancient Amphipolis
4. Greece paralyzed by major strike, flights cancelled
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscos Greek unit adds multinational rail-freight client
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.