Βy A. Doga
A recent change in the board of directors of the Hellenic Financial Stability Fund (HFSF), which generated criticism of “abruptness” by local circles, was the reportedly behind Thursday’s high-profile statement by National Bank (NBG) president Louka Katseli, who charged that Greece’s banking sector was being led to “one-dimensional style of management”.
Katseli, a former minister in several PASOK government who is also the chair of the Greek banks’ association, estimated that the Single Supervisory Mechanism (SSM), is “bearing its teeth” at Greece’s twice recapitalized systemic banks.
Under the current legal framework, Katseli is also ineligible from heading NBG’s board of directors.
Katseli’s comments echoed other local banking executives’ reactions, following the reshuffle at HFSF, replacements on the boards of the four systemic banks as well as a recent intervention for the nomination of a new CEO at Piraeus Bank.
The reputed interventions by the SSM, at the highest levels of management at Greece’s systemic banks, is considered in Athens as showing distrust on the part of creditors vis-à-vis the domestic banking sector, the domestic business community and the very financial structure that operated in the country for several decades.
Banking sources quoted by “N” referred to a “one-size fits all” perception on the part of creditors and European regulators, a view that permeates a law stipulating the criteria for participation on banks’ board of directors and top management positions.
