Wednesday October 22, 2014 Search
Weather | Athens
24o C
14o 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)  
PPC gets approval for two wind parks in Rodopi
ECB cools speculation over bank health checks ahead of results
Greeces NBG says Turkish unit to issue new shares
At least 11 banks to fail European stress tests, three in Greece, report says
Parliament votes to lift parliamentary immunity of GD MP
The Greek Parliament has voted to lift the parliamentary immunity of Golden Dawn MP Artemis Matthaiopoulos to face charges of robbery. During a vote Wednesday, 198 of the 203 deputies presen...
Ancient Greek well yields rare wooden statue
Archeologists in Greece have uncovered a rare wooden statue preserved in the muddy depths of an ancient well in Piraeus, the port of Athens. A Culture Ministry statement said Tuesday that th...
Inside News
BASKETBALL
PAOK fans stop coach Markopouloss move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOKs George Papandreou ma...
EDITORIAL
Taking care of our key industry
Its time to face facts: Tourism is the countrys heavy industry. The sectors considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Parliament votes to lift parliamentary immunity of GD MP
2. PPC gets approval for two wind parks in Rodopi
3. ECB cools speculation over bank health checks ahead of results
4. Ancient Greek well yields rare wooden statue
5. Turkey to continue seismic surveys, Davutoglu says
6. EUs Juncker wins Commission-team approval with investment vow
more news
Today
This Week
1. At least 11 banks to fail European stress tests, three in Greece, report says
2. Cyprus to block Turkey's EU talks after EEZ violation
3. Junckers EU commission team set for parliamentary green light
4. Taprantzis resigns from privatization agency TAIPED
5. EUs Juncker wins Commission-team approval with investment vow
6. EU's Juncker pledges investment plan for jobs
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Coalition shooting itself in the foot
4. Greece must stick to reforms, says Schaeuble
5. GPO poll gives SYRIZA clear lead over New Democracy
6. Greeces closed society is central to its current malaise
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.