Greece’s four systemic banks were handed a “report card” late Thursday after a review of each of the four by the firm Spencer Stuart, with Eurobank posting the highest score and with Alpha Bank’s attracting only one recommendation, namely, that it eliminate one of our executive member positions from its board of directors.
By A. Doga
Greece’s four systemic banks were handed a “report card” late Thursday after a review of each of the four by the firm Spencer Stuart, with Eurobank posting the highest score and with Alpha Bank’s attracting only one recommendation, namely, that it eliminate one of our executive member positions from its board of directors.
The review comes as domestic lenders are obliged to comply with a stricter memorandum-mandated corporate governance framework. The recently racapitalized and still capital control-plagued Greek banks must implement recent legal changes and recommendations in the review, which was commissioned by the Hellenic Financial Stability Fund (HFSF).
The four Greek banks – Alpha, Eurobank, National Bank of Greece and Piraeus Bank – are now scheduled to present their proposals and counter-proposals for compliance by the end of the month. They have until the end of September to implement changes, as per the third (bailout) memorandum.
Regulatory bodies, both on the national and European level, will then confirm compliance, i.e. evaluation of board of directors and high-level committees based on standing and measurable targets.