Karamouzis: Greek banks have among the highest CARs in the eurozone

The president of the Hellenic Bank Association and of Eurobank, Nikolaos Karamouzis, spoke about the Greek banking system and its challenges in an event at the LSE in London.

“It is encouraging that after many years of delays in Greece, the necessary legislative framework for NPLd and NPEs is in place, as are regulations regarding the possibility of selling loans in the secondary market, electronic auctions, the out-of-court debt settlement mechanism, the bankruptcy code and the licensing of non-performing loan management companies,” Karamouzis said, expressing his optimism that the targets for 2017 will be achieved.

He also noted that “we must trust the European Central Bank’s supervisory mechanism, the SSM, which is also responsible within the euro area for assessing and determining the financial and capital position of each bank.”

Greek banks still maintain today a Tier 1 capital ratio, which is among the highest in the European Union – at 17.2 pct on average, or 33 billion euros, and even in terms of full implementation of CRDIV (fully loaded), the index is 16.3 pct. Therefore, they have one of the highest capital adequacy ratios (CARs) – among the highest in the eurozone, he said.

Source ANA-MPA
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