Fitch: Banks can cope with cash pressure
Greek banks are better prepared than in 2012 and a possible outflow of deposits will be manageable, according to a Fitch Ratings analysis. However the international firm noted that local lenders will face a greater risk from any prolonged political and economic uncertainty and a delay in reaching an agreement with the country’s creditors.
Fitch said that the outflow of deposits since mid-December has reached 2 percent of the whole of the credit system’s balance, or over 3.2 billion euros. It also estimated that withdrawals will continue as the day of the general election draws nearer. Further pressure on the cash flow of the Greek credit system will come from the decline of the euro against the Swiss franc, according to Fitch.
Still, local banks have created liquidity cushions and have access to central bank funding, so they should be able to stand the pressure, the Fitch analysts expect.
