Results of a Supervisory Review and Evaluation Process (SREP), sent to Greece's systemic banks last week by the Single Supervisory Mechanism (SSM), cited the level of regulatory capital needed by each of the four after a 2019 "stress test", with results directly linked with the course of reducing non-performing loans(NPLs) held by each.
By E. Sakellari
[email protected]
Results of a Supervisory Review and Evaluation Process (SREP), sent to Greece's systemic banks last week by the Single Supervisory Mechanism (SSM), cited the level of regulatory capital needed by each of the four after a 2019 "stress test", with results directly linked with the course of reducing non-performing loans(NPLs) held by each.
Greek banks are now called upon to re-submit targets for reducing NPLs to the SSM over the 2019-2021, including provisions over new "bad debt", especially NPLs without guarantees. The latter must be completely written-off three years after being declared permanently overdue.
The SSM has cited a deadline of March 29 for Greek banks to submit new targets, ones that must include updated provisions.
Additionally, a meeting on Friday between bank CEOs and top government official is reportedly scheduled in Athens, with the focus again being on finalizing a compromise proposal for a new legal framework to protect primary residences in Greece from creditors. The current framework, the so-called "Katselis law", expires this month.
The goal is for the draft framework to be ready for submission to European creditors' top auditors on Monday.