Friday September 19, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece's lenders accept lower capital ratio for bank health test

Greece's international lenders have agreed that a lower capital ratio can be used in a second stress test of the country's major banks, bringing it in line with a European banking benchmark, a banker close to negotiations told Reuters on Thursday.

The country's central bank has run a second health check on National Bank, Alpha Bank, Piraeus Bank and Eurobank to assess whether last summer's 28 billion euro recapitalization has left them capable of absorbing future shocks as bad loans keep rising.

The troika of lenders from the International Monetary Fund, European Commission and European Central Bank had wanted the test to be based on a Core Tier 1 capital adequacy ratio of 9 percent, the same as that used in the first round of domestic health checks in 2012.

That rate reflected the high rate of bad loans in Greece's banking sector.

But the lenders agreed to cut the rate to 8 percent for the second check, bringing it into line with the benchmark used for European bank stress tests.

"The troika has agreed to a Core Tier 1 ratio of 8 percent in the baseline scenario, the banker said.

The lower reference rate will mean lower capital needs for Greece's four main banks.

The four are expected to need about 5 billion euros ($6.83 billion) in extra capital, two senior banking sources told Reuters last week, near the bottom of estimates that have ranged from 4.5 billion to 15 billion euros.

The troika, which met with the Bank of Greece's top brass on Wednesday, is checking the methodology used in the stress test. The two sides are expected to hold another meeting before the results are released by late next week, the banker said.

Non-performing loans held by Greek banks rose to about 31 percent of their total loan book at the end of the third quarter last year from 29.3 percent at the end of the first half. [Reuters]

ekathimerini.com , Thursday February 27, 2014 (14:12)  
OPAP, Intralot bid for Greek horse race betting licence
Hardouvelis signals Greece may skip IMF loans to exit aid curbs
NBG-owned Finansbank looks into possible secondary public offering
ECB eyes banks capital quality as target for supervisory power
Minister calls on Tsipras to clarify position on public sector checks
Administrative Reform Minister Kyriakos Mitsotakis called on SYRIZA leader Alexis Tsipras to publicly state his position on the governments efforts to review public sector contracts and roo...
SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
SYRIZA has called on New Democracy to respond to a newspaper report that claimed the former cabinet secretary Panayiotis Baltakos advised Golden Dawn MPs on how they should vote. Leftist MP ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their countrys independence or whether they will remain citizens of the United Kingdom of Great Britain and Northern Ireland. What was alread...
EDITORIAL
Breathing room
Even Greeces biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Minister calls on Tsipras to clarify position on public sector checks
2. SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
3. Claims that high profile personalities escape punishment to be probed
4. OPAP, Intralot bid for Greek horse race betting licence
5. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
6. NBG-owned Finansbank looks into possible secondary public offering
more news
Today
This Week
1. EIB signs deals with Greece for 815-mln investment in infrastructure projects
2. ECB eyes banks capital quality as target for supervisory power
3. Samaras heads to Azerbaijan for two-day visit
4. Dozens of arrests at march to mark anniversary of Fyssas murder
5. Syntagma metro station to close for Fyssas tribute concert
6. Homeless man falls to death from shelter in central Athens
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.