XΡ. ΣΤΑΪΚΟΥΡΑΣ
- 30 Apr 2023
- economy
"Today, the Greek banking system is clearly in a better position than it was four years ago, in order to absorb any shocks from the international markets," said Finance Minister Christos Staikouras from the floor of Parliament.
The minister's statements were made on the occasion of the turmoil experienced by the global financial system, which, he said, was mainly triggered by the collapse of SiliconValley Bank, as well as the sharp drop in the price of CreditSuisse shares.
Speaking in the context of a bill debate on the creation of an OECD population center in Crete, Mr. Staikouras explained:
1). Banks have cleaned up their balance sheets using the "Hercules" program, whose guarantees do not go into the public debt - as various political parties have confidently argued here in Parliament - and have single-digit non-performing loan ratios. He noted, in fact, that in July 2019 the "red" loans in the banks' portfolio were around 44%. "We received them at 44%, as we delivered them in January 2015. Today it is at 8.7% (December 2022)."
2). Banks have significantly strengthened their liquidity through two pillars: deposit growth and market access. "To be specific: Deposits in the last four years have increased by 30% or 50 billion euros. And access to international markets has been strengthened with issues of securities and equity instruments amounting to around 12.5 billion euros.
3). Banks maintain capital adequacy ratios well above the minimum requirement. This limit is low compared to what Greek banks have, which is 17.5% in December '22.
4). Banks have returned to profitability after a string of loss-making years.
"The Greek banking system is in a much better position today than four years ago"
As Mr. Staikouras underlined, "all these are positive elements that prove that the banking system today is in a much better position than four years ago".
Nevertheless, noted the Minister of Finance, "there is no room for complacency. Uncertainties worldwide are many and the challenges are new and great. The government, in cooperation with the competent supervisory authorities, is monitoring the developments and will continue to ensure the necessary financial stability".
Therefore, Mr. Staikouras continued, "as evidenced by the citation of the data I have made indicative of the course of the Greek economy and also of the financial system, we have won as Greece, all together collectively, many battles. And we can also win the battle of modernizing the state, but with composure, with determination and with creative action. We can get a better state with more accountability, more efficiency and more transparency. But this requires responsibility. Individual and collective responsibility from all of us".
