ECONOMY

EU banks watchdog calls for fast solution on Greece

The head of Europe’s banking supervisory authority, Daniele Nouy, on Tuesday called for a rapid solution to Greece’s debt problems in order to reduce the uncertainty for the banking sector.

Nouy, who heads the Single Supervisory Mechanism (SSM), told a hearing before the European Parliament that the Greek banks have “a much better solvency situation than in previous years.”

That was due to the recapitalization and restructuring efforts on the part of the banks, she said during the hearing, which was transmitted live online. Nevertheless, “this progress is overshadowed by heightened political uncertainty in the country,” Nouy warned.

“It is important that solutions are found fast to decrease the uncertainty.”

Nouy insisted it was “not the first time Greek banks are under stress,” but “in my view they have never been so well equipped to go through this political episode.”

The SSM, which is situated within the European Central Bank, took over as Europe’s banking supervisor in November and is directly responsible for monitoring 123 banking groups.

[AFP]