Greek banks are well shielded

Goldman Sachs emphasized that Greek banks have healthy levels of liquidity, with the coverage ratio moving well above 100%, at 198% on average, the loan-to-deposit ratio being well below 100%, at 67%, and the fixed funding ratio also well above 100%, at 132% on average. [AP]

The position of Greek banks in the face of the international banking crisis remains strong, Goldman Sachs points out, answering questions from its clients about the sector's capital, liquidity and investment portfolio.

Greek systemic banks significantly improved their total capital and CET1 capital ratio levels in 2022, by an average of around 1.8% year-on-year, he notes. The CET1 ratio for National Bank, Eurobank, Alpha Bank and Piraeus Bank was at 15.6%, 15.2%, 11.9% and 11.5% respectively, while the total capital adequacy ratio was at 16.8%, 18.2%, 16.1% and 16.4% at the end of 2022, well above the minimum supervisory requirements.

At the same time, according to Goldman Sachs, their managers anticipate a further improvement in capital adequacy of 100-150 basis points in 2023 and 250-350 bps until 2025, which is not based on new issues of AT1 or Tier 2 titles.


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