Friday August 22, 2014 Search
Weather | Athens
32o C
25o 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)  
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Primary surplus exceeds January-July target figure
Ryanair in Cyprus Airways talks
KEELPNO blames stomach bug for sick tourists on Rhodes
The Center for Disease Control and Prevention (KEELPNO) on Thursday contradicted foreign press reports according to which hundreds of tourists suffered food poisoning at a hotel on Rhodes ea...
KEPs to issue new and replacement driving licenses
Greeks and foreigners living in Greece will no longer have to queue up at the Transport Ministry to get new or replacement driving licenses as the government decided yesterday that Citizen S...
Inside News
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
ATHLETICS
Long jumper Tsatoumas takes Greeces second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
Inside Sports
COMMENTARY
Self-destructing political system
It finally seemed as if we had found some peace of mind. The vast majority of Greek MPs chose to abstain from festivities on August 15, also known as Assumption Day, thus sparing us from the...
EDITORIAL
Welcome movement
Many have spoken about the need to spur economic growth in this debt-wracked country, but very few officials seem to actually be doing anything meaningful to make this happen. Recent weeks h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. KEELPNO blames stomach bug for sick tourists on Rhodes
2. Report: Greek banks sturdily positioned
3. Economy stunted by property tax demands, report says
4. Primary surplus exceeds January-July target figure
5. KEPs to issue new and replacement driving licenses
6. EU funds reserved for waste facilities in northern Greece
more news
Today
This Week
1. Merkel cites euros construction flaws as economy sputters
2. Brussels warns Greece over plans to allow construction near Korinos beach
3. Second man held over double murder in Mani
4. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
5. Eurozone business growth slows in July, prices fall: PMI
6. Inspectors visit Rhodes to probe reports of mass food poisoning of hotel guests
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canadas fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys no to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.