The Greek banking system is clearly in a better position today than it was four years ago to absorb any shocks from international markets,” said Finance Minister Christos Staikouras from the floor of Parliament on the occasion of the shocks faced by the global financial system, which, he said, were mainly caused by the collapse of Silicon Valley Bank and a sharp drop in the share price of Credit Suisse.

Speaking in the context of the discussion of the draft law on the establishment of the OECD Population Center in Crete, Mr. Staikouras explained that:

“-1st: The banks have cleared their balance sheets with the Hercules program, whose guarantees do not go into public debt — as some political parties have argued here in Parliament — and have single-digit NPL ratios. He even noted that in July 2019, red loans in the portfolio of banks were about 44%. “We received them at 44% as we delivered them in January 2015. Today it is 8.7% (December 2022).”

-2nd: Banks have significantly strengthened their liquidity through two pillars, increased deposits and market access. “To be precise: deposits over the past four years have grown by 30% or 50 billion euros. And access to international markets has been enhanced by the issuance of securities and capital instruments worth around 12.5 billion euros.

-3rd: Banks maintain capital adequacy ratio well above the minimum term. This limit is low compared to what Greek banks have, which is 17.5% in December 22, and

4th: Banks have returned to profitability after a series of loss-making years.”

As Mr. Staikouras stressed, “all these are positive elements, proving that the banking system is in a much better position today than it was four years ago.”

Nevertheless, the Minister of Finance noted, “We cannot be complacent. There are many uncertainties around the world, and the challenges are new and big. The government, in cooperation with the competent supervisory authorities, is monitoring developments and will continue to ensure the necessary financial stability.”

Therefore, continued Mr. Staikouras, “as the figure I have given, reflecting the course of the Greek economy as well as the financial system, we, as Greece, have collectively won many battles. And we can also win the battle for the modernization of the state, but coolly, decisively and creatively. We can achieve a better state with more accountability, more efficiency and more transparency. But this requires responsibility. Individual and collective responsibility of each of us”.

Source: RES-IPE