Why investors are avoiding bank stocks

The particularly low prices of bank stocks on the Athens bourse, the outlook for the loan payment suspension program and the Bank of Greece's plan to create a "bad bank" are the main issues regarding the local credit system that are worrying investors.

The online meetings that senior bank officials had with foreign fund managers in the context of the ATHEX Group's Annual Greek Roadshow, which started on Thursday and concludes on Monday, showed that the poor visibility regarding the payment moratoriums of loans adding up to 20 billion euros, which may turn into new bad loans, and generally worries about how 2021 will develop for the sector, are the main reasons for investors' wait-and-see stance.

"There is no negative attitude, thanks to the very low level of bank stock valuations, with the price-to-book ratio at 0.2; however, there are concerns about next year, so...