In an official statement on the ECB stress tests results that were announced on Sunday, October 26, the Bank of Greece states that “ECB’s Comprehensive Assessment shows that the capital raising and restructuring plans implemented by the four Greek banks have significantly strengthened their capital positions.”

Aggregate results for Greek Banks

According to the Bank of Greece, three of the four Greek credit institutions that took part in the Comprehensive Assessment have no capital shortfall under the relevant dynamic balance sheet assumption and the fourth bank has practically no shortfall.

Under the static balance sheet assumption, Alpha Bank S.A., has no capital shortfall, while Piraeus Bank S.A. has a capital shortfall that is more than covered by the capital raising performed in 2014 (net of repayment of preference shares). Under the static balance sheet assumption, National Bank of Greece S.A. and Eurobank Ergasias S.A. have a capital shortfall that is not fully covered by the share capital increases performed in 2014. However, as stated in the aggregate report on the Comprehensive Assessment: “[these] banks … will have dynamic balance sheet projections (which have been performed alongside the static balance sheet assessment as restructuring plans were agreed with DG-COMP after 1 January 2014) taken into account by the JSTs in determining their final capital requirements. Under the dynamic balance sheet assumption, one bank (National Bank of Greece S.A.) has no shortfall and one bank (Eurobank Ergasias S.A.) has practically no shortfall”.

The results of this exercise provide confirmation that the capital raising and restructuring plans implemented by the four Greek banks have significantly strengthened their capital positions.