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> Economy

ECB finds problems for two Greek banks

The results of the health check weren't glowing but the problems of Greek banks can be solved

Newsroom October 27 07:36

The European Central Bank (ECB) said Sunday that the bulk of Europe’s biggest banks would be able to survive a financial crisis. The assessment was intended to remove a cloud of mistrust impeding lending in countries like Greece and Italy to avoid a relapse into recession for a third time since the global financial crisis started six years ago.

Only 13 out of the 130 big eurozone banks under review were found to have problems following the in-depth review. These weak banks – that include two Greek banks – need to cushion themselves but it is unlikely that they would be put out of business by the review’s results.

The ECB performed stress tests on the four systematic credit institutions of Greece and found that Alpha and Piraeus completed the exercise successfully however Eurobank and the National Bank of Greece need to cover 291 million euros in total.

“Eurobank has practically no shortfall and National Bank of Greece has no shortfall,” said the ECB statement on Sunday.

Banks that need to raise capital

Austria: Oesterreichische Volksbanken

Belgium: AXA Bank Europe, Dexia

Cyprus: Hellenic Bank Public Company

Greece: Eurobank Ergasias, National Bank of Greece

Republic of Ireland: Permanent TSB

>Related articles

Greek exports broke records with a record 37 billion euros

Where affordable housing falls short in Greece: IOBE proposes a cap on rent increases

Greek firms secure key roles in Libya’s reconstruction

Italy: Banca Carige, Monte dei Paschi, Banca Popolare di Milano, Banca Popolare di Vicenza

Portugal: Banco Comercial Portugues

Slovenia: Nova Kreditna Banka Maribor, Nova Ljubljanska Banka

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