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National Bank of Greece puts Turkish unit on the block
Nov 3 2015, 11:14 ET | About: National Bank of Greece SA (NBG) | By: Stephen Alpher, SA News Editor Contact this editor with comments or a news tip
Facing a €4.6B capital shortfall under the adverse scenario of the ECB's latest stress test, National Bank of Greece (NBG -8%) will attempt to close some of that with the sale of Finansbank. The tangible book value of the unit is €3.4B, according to NBG.
National Bank of Greece : Greek banks under pressure to plug 14.4B capital shortfall
11/03/2015 |
Greece's four main lenders face a Friday, Nov. 6, deadline for outlining how they plan to raise 14.4 billion ($15.9 billion) in capital by year's end following the latest health check from the European Central Bank.
The asset-quality review, carried out by the euro zone's new single banking supervisor, identified the capital shortfall at National Bank of Greece SA, Piraeus Bank SA, Eurobank Ergesias SA and Alpha Bank AE.
"Covering the shortfalls by raising capital will result in the creation of prudential buffers at the four Greek banks, which will improve the resilience of their balance sheets and their capacity to withstand potential adverse macroeconomic shocks," the Frankfurt-based ECB said over the weekend.
Under the stress-test scenario, Piraeus Bank faces the biggest hole, of around 4.9 billion, followed by National Bank of Greece (4.6 billion), Eurobank (2.1 billion) and Alpha Bank (2.7 billion). The regulator identified a smaller, 4.4 billion, shortfall under "base case" modeling.
The overall shortfall is largely in line with expectations and comes after euro-zone finance chiefs in July set aside 25 billion for Greek lenders as part of an 86 billion bailout package designed to keep the Mediterranean country from going under.
New legislation approved by Greek lawmakers on Saturday gives the state-owned Hellenic Financial Stability Fund a more active role in helping lenders get back on their feet, with new powers to evaluate bank boards and veto strategic decisions. The bill also says the fund can cover part of the capital gap to banks either through capital convertible securities, or shares with full voting rights, with details to be worked out by the Greek cabinet.
In the meantime, the lenders are gearing up to raise money from private sources after reporting combined net losses of more than 4.6 billion in quarterly results filed on Saturday.
"National Bank of Greece intends to cover both the base case and adverse scenario shortfalls with as much capital as possible from private sources and its own capital actions, so as to significantly minimize the need for state aid and consequent burden on Greek debt," said CEO Leonidas Fragkiadakis in a statement.
Piraeus Bank CEO Anthimos Thomopoulos said his bank also plans to raise capital from private investors and other secondary actions. He added that based on recent investor feedback, "we are confident that our plan can be successfully executed in a short time."
Alpha Bank didn't refer to its capital-raising plans plans, in a statement expressing confidence in its "resilience," while Eurobank promised an announcement once its recapitalization plan gets the green light. It said that in the meantime it has appointed Bank of America Merrill Lynch, HSBC Holdings plc and Mediobanca SpA to assist in connection with the plan "and the potential recapitalization" that may result.
National Bank of Greece : Company Shares of National Bank of Greece SA Drops by -12.76%
11/02/2015 |
National Bank of Greece SA has dropped 12.76% during the past week, however, the bigger picture is still very bullish; the shares have posted positive gains of 51.39% in the last 4 weeks. The shares have underperformed the S&P 500 by 12.93% during the past week but National Bank of Greece SA has outperformed the index in 4 weeks by 42.07%.
National Bank of Greece S.A. has dropped 9.2% during the last 3-month period . Year-to-Date the stock performance stands at -56.87%.The company shares have dropped 69.2% in the past 52 Weeks. On November 6, 2014 The shares registered one year high of $2.58 and one year low was seen on September 30, 2015 at $0.43. The 50-day moving average is $0.7 and the 200 day moving average is recorded at $0.99. S&P 500 has rallied 3.05% during the last 52-weeks.
Shares of National Bank of Greece SA ended Friday session in red amid volatile trading. The shares closed down 0.0709 points or 8.41% at $0.7721 with 12,892,102 shares getting traded. Post opening the session at $0.75, the shares hit an intraday low of $0.7421 and an intraday high of $0.79 and the price vacillated in this range throughout the day. The company has a market cap of $2,728 million and the number of outstanding shares have been calculated to be 3,533,149,600 shares. The 52-week high of National Bank of Greece SA is $2.58 and the 52-week low is $0.432.
Institutional Investors own 2.74% of National Bank of Greece SA shares.
National Bank of Greece SA (the Bank) is a Greece-based financial institution. It provides a range of financial services including retail and commercial banking, asset management, brokerage, investment banking, insurance and real estate at a global level. Its segments are: Retail Banking, which mainly offers different types of loans, deposits and investment products; Corporate and Investment Banking, which includes financial and investment advisory services, deposit accounts, loans, foreighn exchange and trade service activities; Global Markets and Asset Management, which includes all treasury activities, private banking, asset management, custody services, private equity and brokerage; Insurance; International Banking Operations; Turkish Banking Operations, as well as Other. In September 2013, state-owned Hellenic Financial Stability Fund acquired an 84.39% interest in the Company. On December 30, 2013, it sold a 66% of its subsidiary National Pangaea REIC to Invel Real Estate II BV.
National Bank of Greece : Bad loans pile pressure on capital-strapped Greek banks
11/02/2015
Greece's four biggest banks, which suffered severe losses when they were shuttered this summer as the country veered toward economic collapse, must raise nearly $16 billion in new money to withstand any new crisis, the European Central Bank said on Saturday.
The central bank's assessment was eagerly awaited by the financial world as a crucial step in determining how much money the Greek banks would require to achieve stability as the country tries to claw its way out of its deep economic hole.
One of the biggest problems for the Greek banks is the high number of loans to businesses and consumers that are at risk of not being repaid nearly 50 percent of the loans outstanding.
The central bank report put a figure 14.4 billion euros, or about $15.9 billion on what it would take to address the bad-loan problem and enable the Greek banks to operate once again as fully functioning lenders. Without healthy banks to provide the lending and liquidity an economy requires, Greece would struggle to resume economic growth.
Though large, the number announced by the European Central Bank is lower than some experts had feared. And it means that as the banks move to meet their shortfall, it is less likely that bank depositors will be required to take losses. Instead, the money is expected to be raised from bank investors in some combination with funds from the 86 billion package of bailout loans that Greece agreed to this summer with eurozone creditors.
The Greek finance minister, Euclid Tsakalotos, said on Saturday that he welcomed the European Central Bank's assessment. "I am a lot happier today and a lot more optimistic than I was a month ago," he said.
The report by the central bank was the result of its monthslong assessment of the health of the four major Greek banks: Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank.
Greek banks have been relying on emergency loans from the European Central Bank since Prime Minister Alexis Tsipras was elected in January with vows to end austerity in Greece.
The good news for Greek banks is that, one way or another, the money should be available to make up the bad-loan shortfall.
More from the New York Times:
Greece's Big Challenge: Fix Bad Loans Without Destroying Banks
Greek Lawmakers Clear Way for $2.3 Billion in Bailout Funds
Greece Unveils Tough Draft Budget for 2016
In the bailout package, as much as 25 billion was earmarked for helping the Greek banks cover their bad loans. Because the bailout package is money that the Greek government would eventually have to repay, though, the government is wary of relying solely on that money.
The government has proposed a plan that would require bank shareholders and bondholders to make up at least some of the shortfall before the banks could request public funds. The Greek Parliament approved that plan late Saturday.
The Greek people and businesses have been directly feeling the effects of the banks' problems since the Tsipras government moved to help prop up the banks in July by imposing capital controls.
Those limits were meant to keep people and businesses from draining too much money from the banking system because of fears that the banks might collapse.
As part of those controls, banks capped withdrawals at A.T.M.s at 60 a day, creating hardship for many Greeks already hit by pension cuts, tax increases and other austerity requirements of Greece's international bailouts.
The bad-loan problem is a reflection of the sorry state of the Greek economy. After six years of recession, tens of thousands of Greeks and businesses are unable to make payments on loans taken out for their companies, homes and cars. Nearly half of all loans issued by Greek banks are in arrears a liability worth an estimated 107 billion. By comparison, in the United States, only about 2 percent of loans are at risk of not being repaid.
In its stress test, the European Central Bank assumed that the Greek economy could remain in recession through at least 2017.
The central bank's assessment found that at least 7 billion more in loans fell into arrears as the economy slumped this summer, on top of the existing amount of bad loans. That added to pressure on banks to raise new capital, which acts as a cushion against losses.
Piraeus Bank needs 4.9 billion in fresh capital, the central bank found. The National Bank of Greece will need 4.6 billion, Alpha Bank 2.7 billion and Eurobank 2.1 billion.
To raise at least part of the new capital, the banks and the European Central Bank are hoping that private investors will buy Greek bank shares, most of which plunged in value during the summer crisis.
Big American investors who are sharing the pain include the billionaires Wilbur L. Ross and John A. Paulson, whose investment funds made big bets on Greek banks. They have already sustained sizable losses, and they could lose more if bad loans wipe out more bank capital.
The Greek banks have until Nov. 6 to announce how they will raise the money.
Eurogroup ministers fear that if the Greek gov't receives the €10bn for the banks and bail-in is averted, it won't pass crucial milestones.
Sorry,Wrong board
National Bank of Greece : Liability Management Exercise
11/02/2015
The information to which this gatepost gives access is exclusively intended for persons who are not residents of the United States, who are not physically present in the United States, and who are not U.S. persons. This information does not constitute an offer, or an invitation to purchase, securities of NBG in the United States or in any other jurisdiction in which such offer or invitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this information are requested to inform themselves about and to observe any such restrictions.
Any securities discussed on the following pages may not be offered or sold in the United States or to, or for the account or benefit of U.S. persons, absent registration under the United States Securities Act of 1933, as amended, or pursuant to an exemption from such registration.
National Bank of Greece : Liability Management Exercise
11/02/2015
?The information to which this gatepost gives access is exclusively intended for persons who are not residents of the United States, who are not physically present in the United States, and who are not U.S. persons. This information does not constitute an offer, or an invitation to purchase, securities of NBG in the United States or in any other jurisdiction in which such offer or invitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this information are requested to inform themselves about and to observe any such restrictions.
Any securities discussed on the following pages may not be offered or sold in the United States or to, or for the account or benefit of U.S. persons, absent registration under the United States Securities Act of 1933, as amended, or pursuant to an exemption from such registration.
Greece sets mix of bonds, shares in state aid to recapitalise banks
11/01/2015
A woman cleans the pavement in front at an ATM outside an Alpha Bank branch in Athen
Greece's bank bailout fund HFSF will provide state aid to recapitalise the country's main banks by buying a mix of contingent convertible bonds (CoCoS) and new shares the lenders will issue, the government said on Sunday.
The Hellenic Financial Stability Fund will supply 75 percent of the aid needed via CoCos and 25 percent in exchange for new common shares the banks will issue, the government's economic policy council said, finalising the architecture of the plan.
A health check of Greece's four main banks - National (>> National Bank of Greece), Piraeus (>> Piraeus Bank SA), Eurobank (>> Eurobank Ergasias SA) and Alpha (>> Alpha Bank S.A.) - by the European Central Bank has shown that the lenders need to cover a 14.4 billion-euro (£10.2 billion) capital hole.
The ECB conducted an asset quality review (AQR) and stress tests under baseline and adverse scenarios for the country's economy and projected credit losses up to 2017. It announced the results on Saturday.
The exercise revealed that under baseline assumptions the banks need to plug a 4.4 billion-euro capital shortfall. Under the adverse scenario, the capital hole came to 14.4 billion euros.
If banks cover the baseline capital gap from private investors, state aid from the HFSF rescue fund to plug the rest up to 14.4 billion euros will be supplied based on the 75-25 percent ratio of CoCos and new shares, the government said.
Should banks fail to cover the baseline capital need from private investors, then the HFSF will supply funds "up to the amount needed to cover losses incurred or likely to be incurred in the near future" in exchange for common shares only, the government said.
The remainder of the aid will be pumped in based on the 75-25 percent ratio of CoCos and new shares.
"The government calls on the managements of the four systemic banks to make every effort to encourage the participation of domestic investors as well in the capital raising process," the government said.
National Bank of Greece : Greek banks cede control in recapitalization plan
Hellenic Fund will have board member at each bank receiving funds Greek banks will cede significant management control under the government's rescue plan passed by parliament late on Saturday.
The four major banks -- National Bank of Greece, Piraeus, Alpha Bank and Eurobank -- that are being recapitalized with €14 billion ($15.4 billion) will each have an official of the Hellenic Financial Stability Fund (HFSF), which is providing most of the funds, on its board. The fund will also have voting rights based on its shareholding in the banks, like any other shareholder.
The European Central Bank's Single Supervisory Mechanism had announced on Saturday morning, the amount , according to the stress tests it had run for the capital needs of Greece's largest banks, that would be needed for recapitalization. The sum being provided meets the needs of a worst-case scenario, the ECB said.
Private investors will also be able to invest in these banks to help meet the funding gap. They will have until Nov. 6 to purchase shares in the four banks, after which the HFSF will provide the funds.
The HFSF is expected to have a representative of one of its European creditors, from either the EU or the Eurogroup, on its board. Funds for recapitalizing the Greek banks will ultimately be provided by the Eurozone Member States' bailout -- €25 billion ($27.5 billion) of bailout funds is to be set aside for this purpose.
Under the terms of the new law, the fund is also to establish a committee for the evaluation of its employees. The committee will have the right to fire employees who do not meet the committee's criteria.
This is the third recapitalization in many years for the Greek banking system having received €28.6 billion ($31.7 billion) by the HFSF and private shareholders in 2013, and another €8.3 billion ($9.2 billion) from private shareholders following year, according to the Bank of Greece, the country's central bank.
This year, a combination of capital controls and new austerity measures dictated by the latest bailout agreement since July, along with a load of non-performing loans, have put the Greek banks into a highly vulnerable position. According to the National Bank of Greece, about half of all outstanding loans at the four banks are non-performing.
According to the bill, the Hellenic Financial Stability Fund will cover the capital gap that isn't covered by private investors based on a combination of new shares and contingent convertible bonds (Cocos). It is also stated in the bill that every new share will come with full-voting rights.
The ratio of Cocos--shares in which the HFSF will cover participation--will be determined by an act of the cabinet on Sunday according to the Finance Minister Euclid Tsakalotos who spoke in Parliament on Thursday.
During Saturday's debate at the House, Tsakalotos appeared optimistic about the state of the economy. After the announcement of results of the stress tests he said "it is much better than we thought and it removes the risk of Greek deposits haircut".
What's more, Greek bank account holders can rest assured that deposits under € 100,000 ($110,000) are fully insured by the Community Directive BRRD [Bank Recovery and Resolution Directive]. BRRD is already in force in all EU Member States from January 1, 2015 and will be enforced in Greece from January 1, 2016.
Legislation concerning the recapitalization of the Greek banks including the participation of the Hellenic Financial Stability Fund (HFSF), the Greek bank bailout fund created in 2010 by European authorities was passed in Greek parliament this Saturday evening.
The bill passed with a large majority at the plenary of the House with all parties voting in favor except for far-right Golden Dawn party and the Greek Communist Party.
Now that the legislation is in place, Greek banking authorities must sprint to submit their recapitalization plans to the European Central Bank by Nov. 6. This will begin the process of recapitalization, which is due to be completed by the end of the year. Source: AA
#Greece State Bank Recap Fund participation to be 25% via common shares; remaining 75% of capital to be capitalized v convertible bonds ~BBG
#Greece govt's Economy Cabinet meeting now to decide on terms of Greek state's participation in banks' recapitalization.
#Greece parliament passes banks' recapitalization bill with vast majority. #ECB
Greece | ND leader Meimarakis says ND MPs will vote Yes in banks' recapitalization bill.
ECB to say how much Greek banks need to survive
The European Central Bank is expected to say on Saturday that Greek's battered banks need up to 14 billion euros ($15.4 billion) in fresh capital in order to survive.
It comes after years of economic decline in Greece - bailed out three times by international lenders - that has forced some 42 billion euros to be set aside against bad loans.
Although the banks are currently been kept afloat by access to money through the euro zone monetary system, there is a rush to get recapitalization completed.
If it is not done by the end of the year, new European Union rules mean large depositors such as companies may have to take a hit in their accounts.
The announcement, to be made at 0930 GMT, follows a series of stress tests on the banks to see how they are faring after the long-running dispute over reforms demanded of Greece for international support.
The four main banks concerned are National Bank of Greece (>> National Bank of Greece), Piraeus (>> Piraeus Bank SA), Alpha Bank (>> Alpha Bank S.A.) and Eurobank (>> Eurobank Ergasias SA) .
This bailout stand-off between leftist Prime Minister Alexis Tsipras and his country's international backers - the International Monetary Fund and European Union - almost saw Greece tumble out of the euro zone.
It led to the freezing of central bank funding for Greece's banks and forced controls on cash withdrawals. Although the latter helped stem a further hemorrhaging of savings, it squeezed the economy, making it harder for borrowers to repay loans.
Of a new 86-billion-euro bailout of Greece, 25 billion euros is earmarked as a backstop for banks.
The fact that the capital hole is smaller that this may encourage investors and limit the amount of cash that Athens has to spend in a bailout that tangles the state further in the ownership of the four big groups.
BETTER OR WORSE
To reach their conclusion, the ECB's supervisors are set to count into their calculation roughly 12 billion euros of future tax rebates that the Greek government could pay its banks.
The assessment looked at how many loans would go unpaid if the country's economy performs as expected up until 2017 - the so-called 'baseline'. It will also simulate a 'stress' scenario, where the economy dips further.
Under the baseline scenario, the stress test will show a capital gap of about 4.5 billion euros for the four banks, one banking source has told Reuters. Adding the 'adverse' or stress scenario, the gap could be as high as roughly 14 billion euros.
Greek bankers hope that private investors will buy shares in the lenders. But Greece's future and that of its banks remains uncertain, despite the latest checks.
A fall of more than two thirds in the banks' stock prices this year has served as a reminder of the risks.
Greece on Friday put forward a bank recapitalization bill that outlines how new funds will be pumped into the banks.
(Additional reporting by George Georgiopoulis and Lefteris Papadimas, Editing by Jeremy Gaunt and Mark John)
By John O'Donnell
Stocks treated in this article : Piraeus Bank SA, Alpha Bank S.A., Eurobank Ergasias SA, National Bank of Greece
Greek bank recapitalisation will be successful - deputy PM
The recapitalisation of Greece's four big banks will be successful and the pertinent law will be voted in parliament by Sunday, the country's Deputy Prime Minister Yannis Dragasakis said on Thursday.
"All preconditions are there for a successful conclusion of the process," Dragasakis told Greek President Prokopis Pavlopoulos. "We expect the final results from the ECB on Saturday and until Sunday the (recapitalisation) law will be approved."
The European Central Bank is assessing the capital needs of National Bank NBGr.AT, Piraeus BOPr.AT, Alpha Bank ACBr.AT and Eurobank EURBr.AT. Results of the health check will be released on Saturday.
(Reporting by Lefteris Papadimas, writing by George Georgiopoulos)
Stocks treated in this article : Piraeus Bank SA, Alpha Bank S.A., Eurobank Ergasias SA, National Bank of Greece
Greece's Next Aid Infusion Is Matter of Days, Dombrovskis Says
Rebecca Christie
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October 27, 2015 — 8:45 PM CET Updated on October 28, 2015 — 10:28 AM CET
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Valdis Dombrovskis
Valdis Dombrovskis, vice president of the European Commission. Photographer: Jasper Juinen/Bloomberg
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Milestones for 2 billion-euro payment don't have firm deadline
Financial sector will be focus of requirements for next slice
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Greece is on track to get a 2 billion-euro ($2.2 billion) payment as soon as it finishes meeting the required conditions, European Commission Vice President Valdis Dombrovskis said.
“We are making good progress as regards to those milestones, so this can be really a matter of coming days,” Dombrovskis said in a phone interview from Athens, where he met with Greek authorities to discuss progress on the 86 billion-euro bailout signed in August.
Greece isn’t expected to be ready in time for this week’s discussion among euro-area finance deputies, scheduled for Thursday. Dombrovskis said there’s no set time for disbursing the next slice of money, which can be paid out as soon as Greece makes the necessary progress.
“We are much closer, many milestones are in the process of delivery,” Dombrovskis said. Only a “very few milestones” are the subject of in-depth discussions at this point, he said.
Greek bonds fell, with the yield on 10-year debt rising 13 basis points to 7.816 at 11:20 a.m. in Athens. The yield exceeded 13 percent in June before Prime Minister Alexis Tsipras reached a settlement with the country’s creditors on financial aid.
Tsipras is now up against tight deadlines to keep his nation’s third bailout on track and stave off another round of turmoil over its membership in the currency zone. In approving the rescue plan, euro-area finance ministers set out a detailed schedule of what money can be accessed when.
To start, 3 billion euros must be unlocked -- in two installments -- by the end of November. Milestones for the first 2 billion-euro payment have been set, while the requirements for a further 1 billion euros will be determined later. Any payments after that will be determined by the results of the program’s first review, set to wrap up in November.
Financial Milestones
For the 1 billion-euro payment, milestones probably will focus on the financial sector and a decision is due “relatively soon,” Dombrovskis said. This will help Greece unlock the funds needed for its banking sector, after the European Central Bank finishes the bank assessment that is expected to conclude this month.
Tsipras is due to send the bank recap bill and the remaining legislation required to access the next tranche of money this week.
Greece has until Nov. 15 to unlock 15 billion euros set aside for bank recapitalization, on top of 10 billion euros of bank funds already sitting in a segregated account at the European Stability Mechanism firewall fund. This money is tied to the first program review, although policy makers have left the door open to separating out financial milestones from that overall review if needed.
Making Progress
Euro-area creditors may consider decoupling the schedule for the banking sector from the rest of the program, Dombrovskis said. At the same time, he said, it’s necessary to make progress on all fronts to keep the country’s financial system from collapsing again.
“If we want financial stability in Greece, it’s important that the program is on track because only then can the bank recapitalization be successful,” Dombrovskis said. “Theoretically, imagine we go along with bank recapitalization and eventually abolish the capital controls, which is the aim, and then it turns out that the program is off track -- then we end up in a situation like in the first half of this year.”
Greece had to impose restrictions in June after Tsipras’s decision to hold a referendum on austerity measures required by creditors, which triggered a bank run and forced the government to shut down lenders for a month.
Dombrovskis expressed confidence that Greek authorities would work with bailout creditors to avoid a similar scenario.
“In discussions with the Greek authorities -- with the prime minister, with the finance minister, with the central bank governor -- there was a clear commitment to work very seriously towards the first review and to make a successful review within the month of November,” Dombrovskis said.
National holiday(Ochi day greece)stock market closed
Greece must recapitalise its banks by year end - EU's Dombrovskis
Envoyer par mail
10/27/2015 | 04:41pm US/Eastern
EU Commission Vice-President Dombrovskis addresses a news conference in Brussels
Greece and international lenders must recapitalise its banks by the end of the year and swiftly finalise an assessment of the country's bailout-mandated economic reforms, EU Commission Vice-President Valdis Dombrovskis said on Tuesday.
Unless Greece's four biggest banks are recapitalised before legislation takes effect in January, depositors will be liable for plugging capital shortfalls, he said.
"Euro group conclusions on this question are quite clear, that recapitalisation of the banks is to take place after the first review, but no later than the 15th of November," Dombrovskis told Greece's Skai TV in an interview.
Dombrovskis - in Athens to discuss the reforms Greece needs to complete under terms of an 86-billion-euro ($95-billion)bailout - said that things would get "more complicated" if that did not happen.
"Then you need to apply the Bank Resolution and Recovery Directive ... which may imply a bail-in," he said, referring to bank depositors being forced to contribute to recapitalisation, similar to a raid on deposits in Cyprus in 2013.
Greece is talking to the European Commission, the European Central Bank (ECB), the euro zone's European Stability Mechanism and the International Monetary Fund (IMF) on reforms. But the IMF's participation in stumping up cash is far from certain.
"IMF participation also, to a large extent, depends on the debt sustainability analysis and a possible debt reprofiling," Dombrovskis said.
Under the deal, Greece is set to receive up to 25 billion euros of international money to recapitalise its banks, three of which are majority-owned by Greece's bank bailout fund HFSF.
The ECB's Single Supervisory Mechanism is assessing the capital needs of National Bank of Greece, Piraeus, Alpha Bank and Eurobank, and is expected to release the results of those checks on Oct. 31.
A Greek central bank source said on Tuesday stress tests would be "better than expected" but did not give a figure.
Disagreements emerged with representatives of lenders in Athens last week over Greece's reform progress, needed to unlock a sub-tranche of 3 billion euros.
The biggest disagreement was over the mechanism to tackle non-performing loans at banks. Athens wants protection from foreclosures to cover property values of at least 200,000 euros. Lenders say the threshold should be about 120,000 euros.
Coming up with an effective mechanism to cope with bad loans is important for Greek banks because of the impact of non-performing loans on capital buffers.
Greece govt plans to submit banks' recapitalization bill to parliament on Thursday.
Greek bank recap needs seen less than 20 billion euros - bankers
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10/20/2015 | 03:55am US/Eastern
Woman uses a Eurobank ATM in Athens
The recapitalisation bill for Greece's four main banks will be lower than 20 billion euros (£14.64 billion), two senior bankers with direct knowledge of the matter said on Tuesday.
National Bank of Greece (>> National Bank of Greece), Piraeus Bank (>> Piraeus Bank SA), Alpha Bank (>> Alpha Bank S.A.) and Eurobank (>> Eurobank Ergasias SA) are now undergoing stress tests by the European Central Bank to define capital needs, depleted by a mass deposit withdrawals earlier this year and a mountain of non-performing loans.
"The capital shortfall for the four systemic banks should be less than 20 billion euros," one of the senior bankers told Reuters, declining to be named.
The ECB declined to comment.
(Reporting By George Georgiopoulos and Lefteris Papadimas)
Stocks treated in this article : Piraeus Bank SA, Alpha Bank S.A., Eurobank Ergasias SA, National Bank of Greece
FORM F-6 out
EU's @pierremoscovici to visit Athens #Greece on Wed & Thurs. To meet with PM Tsipras and gov't officials. Presser on Thurs 11:00 CET.
ECB sets baseline CET1 requirements for Greek banks at 9.5 percent
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10/13/2015 | 04:44am US/Eastern
The European Central Bank has set the minimum Core Equity Tier 1 level that Greek banks need to hold at 9.5 percent in its baseline scenario during a stress test and 8 percent in its adverse scenario, a source close to the matter said on Tuesday.
The ECB is carrying out a stress test of Greece's four largest banks - National Bank of Greece (>> National Bank of Greece), Piraeus (>> Piraeus Bank SA), Eurobank (>> Eurobank Ergasias SA) and Alpha (>> Alpha Bank S.A.) - to determine how much capital they need after the recent downturn in the Greek economy.
Under an international bailout agreed last summer, Greece is set to receive up to 25 billion euros of public money to recapitalise its banks, many of which are partly state-owned and have been left with few private stakeholders to 'bail in' by converting their claims to equity.
During the 2014 EU-Wide stress tests, the CET 1 capital hurdle was set at 8 percet for the baseline scenario and at 5.5 percent for the adverse scenario.
(Reporting By Francesco Canepa; editing by Balazs Koranyi)
Stocks treated in this article : Piraeus Bank SA, Alpha Bank S.A., Eurobank Ergasias SA, National Bank of Greece, Attica Bank SA
Finansbank A S : QNB in preliminary talks to buy Turkey's Finansbank
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10/13/2015 | 02:32am US/Eastern
In a statement to the Qatar Exchange, QNB revealed its involvement as a potential bidder for Finansbank, the National Bank of Greece's Turkish banking subsidiary. The statement said that, "…certain preliminary discussions have been held to date however no material developments necessitating respective disclosures have taken place. QNB will make the necessary disclosures to Qatar Exchange as required, which will represent the only official statements on this matter."
Established in 1987, Finansbank operates 654 branches and has more than 12,000 employees. The bank's total assets in H1 2015 reached TRY 82.45 billion. The bank was acquired by National Bank of Greece in 2006.
QNB has also recently investigated the possibility of taking over KFH Malaysia. However, a bourse statement on 22 September said the bank had stopped preliminary talks to acquire Kuwait Finance House (Malaysia) without reaching an agreement.
European Central Bank Governor Mario Draghi urged Greece on Saturday to stick to its latest bailout to pave the way for bank recapitalisation and talks on debt relief.
In an interview with Sunday's edition of Kathimerini newspaper, Draghi said the second tranche of funds set aside for Greek banks' recapitalisation, worth 15 billion euros, would be disbursed after the first review by lenders and no later than Nov. 15.http://www.cnbc.com/2015/10/10/mario-draghi-urges-greece-to-stick-to-bailout-plan.html
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Piraeus Bank SA and Alpha Bank AE plunged at least 29 percent, while Eurobank Ergasias SA plummeted 15 percent. National Bank of Greece SA climbed 2.3 percent,