Banks believe they can cover stress test requirements
By Yiannis Papadoyiannis
BlackRock Solutions is set to run the new stress tests for banks with radically improved macroeconomic conditions, which generates optimism that systemic banks will in most cases cover the additional capital requirements to emerge in the context of the exercise without resorting to the public sector.
Bank sources that are closely monitoring the process estimate that the worst-case scenario by BlackRock on the course of the Greek economy provides for a 2.5 percent gross domestic product contraction next year, against a forecast by the International Monetary Fund for growth of 0.6 percent, a GDP drop of 0.5 percent in 2015 (the IMF expects 2.95 percent growth) and a 1 percent rebound in 2016 (the IMF anticipates a 3.74 percent GDP increase).
Bank officials say that the above scenario can be handled by the local credit sector without having to take recourse to the public sector in most cases. They add that any additional capital needs to emerge from the stress tests will be covered by operating profits, the synergies from the numerous mergers, and the funds from the sale of various assets.