Banks proceed with further cuts to their staff, branch networks

Greek banks are facing increased pressure from their monitoring authorities to drastically cut their operating costs, as regulators perceive that the lack of healthy financing and the reduction of revenues from traditional sources are hampering the recovery of the local credit system.

Given the weak rebound of the Greek economy, banks are being forced to focus on trimming their operating costs, starting a new wave of branch closures and reducing staff numbers further after significant cuts in recent years.

Setting the tone of what is to follow, Piraeus Bank proposed measures to its staff union on Tuesday such as voluntary leave without pay and voluntary part-time positions.

The issue is at the focus of talks between lenders and the auditing mechanisms. The regulators are pushing for new corporate models that will take into account both the technological...