Goldman Sachs report points to strength of Greek banks
Four issues mostly concern investors with regard to Greek banks, says Goldman Sachs in a report, while reiterating its positive attitude toward the sector’s prospects in view of the first-quarter results.
It says it has received several questions from investors regarding liquidity position, exposure to commercial real estate, capital adequacy and asset quality.
According to its analysis, Greek banks have the strongest liquidity/funding reserves in the eurozone, with an average liquidity coverage ratio (LCR) of 198% (against an EU average of 153%) and an average loan-to-deposit ratio (LDR) of 0.7x, against 0.9x in the EU.
The deposit base of Greek banks is largely made up of retail funding with a rate of approximately 73% of total deposits.
