Greek lender Αlpha Bank, one of four systemic and thrice-recapitalized banks in the country, this week announced a major securization of NPLs via a "carve out" process.
Greek lender Αlpha Bank, one of four systemic and thrice-recapitalized banks in the country, this week announced a major securization of NPLs via a "carve out" process.
The level of the securization reaches 12 billion euros, and is forecast to reduce "bad debt" burdening the banks' spread sheets by 73 percent of the total, dropping the NPEs and NPLs indexes to 20 and 10 percent from the current 44 and 28 percent, respectively.
Following the completion of the transaction, the CET1 index is expected to exceed the minimum allowed ratio set by banking regulators, with the goal being a CET1 ratio of above 15 percent of Cash Against Documents (CAD), rising to 17 percent by 2022.