Tuesday September 30, 2014 Search
Weather | Athens
26o C
17o 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 Portugal’s Banco Espirito Santo, which last week reported first-half losses of 3.58 billion euros, will harden the ECB’s 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)  
NBG Pangaea eyes listing on foreign bourse, huge portfolio
Out-of-control unpaid bills bring PPC to its knees
Banks feel optimistic ahead of stress test results
S&P upgrades OTE’s credit rating and revises outlook
Would-be commissioner Avramopoulos sets out priorities on migration
Dimitris Avramopoulos, the EU commissioner-designate for migration and home affairs, on Tuesday sought to set out his priorities for a post regarded as more crucial than ever amid increasing...
Money ring sent 4.5 mln abroad
Two Afghan employees at a currency exchange bureau in central Athens and a Greek alleged to own the establishment were detained on Tuesday in connection to the alleged illegal transfer of mo...
Inside News
SOCCER
All team sports suspended next weekend in memory of dead fan
The government announced on Monday the suspension of all team sports events in Greece scheduled for next weekend, October 4 and 5, in the memory of the Ethnikos Piraeus fan who died a few ho...
SOCCER
Karamanos punishes Michel for deeming him surplus
Atromitos forced Olympiakos’s first loss this season in all competitions on Saturday to allow PAOK to go alone on top of the Super League table on Sunday. Odds-on title favorite Olympiakos l...
Inside Sports
COMMENTARY
Next-day jitters
It is usual for Greek governments, whether one-party or coalitions (which are normally loath to actually work together), to claim that their only real challenge is dealing with the country’s...
EDITORIAL
No sweet debt deals
The lion’s share of Greece’s debt is held by European Union member states and the International Monetary Fund. A writedown of the European part of the debt would require the approval of the ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. NBG Pangaea eyes listing on foreign bourse, huge portfolio
2. Out-of-control unpaid bills bring PPC to its knees
3. Banks feel optimistic ahead of stress test results
4. S&P upgrades OTE’s credit rating and revises outlook
5. Athens tourism fuels hotel occupancy
6. Would-be commissioner Avramopoulos sets out priorities on migration
more news
Today
This Week
1. Next-day jitters
2. Roma camp off Mesogeion Avenue set for demolition amid reactions
3. No sweet debt deals
4. Greek unemployment dips to 27 pct in June, but still highest in EU
5. Commissioner-designate Avramopoulos to face three-hour interview on EU's migration portfolio
6. Roma camp evacuation postponed; flow resumes on Mesogeion Avenue
Today
This Week
1. Alexander the Great's tomb not at Amphipolis, says Culture Minister
2. Greece may opt for unusual president to avoid snap polls, Venizelos says
3. Woman allegedly buried alive by accident in northern Greece
4. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
5. Venizelos denies jihadis are being trained in Greece
6. Should you bet with Kissinger on where the world is heading?
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.