How the market saw the stress tests of Greek banks At the heart of the political risk analysts to determine the Modestly, the market welcomed the results of stress tests for Greek banks as managers of international funds and investment banks, analysts have turned their attention to the next open fronts for the sector and the Greek economy and the main political risk. However, the fact that practically the capital needs appear at this stage almost zero, removes the possibility of hasty movements. However, the big as it is called political risk, impedes any reliable economic forecasts, given that political stability is a prerequisite for the recovery of the Greek economy and the banking sector. Moreover, restructuring scenarios and increases capital requirements which can not now be fully finalized affecting attitude of foreign investors, determining the flow of funds to the country. Analysts Rahul Shah and Raj Madha of Deutsche Bank, noted, however, that an obstacle was overcome after the stress tests that the ECB considers that it was a credible performance as the average erosion of funds was 6.1% for Greek banks against 4.1% on average in the rest of Europe. The effect of the treatment of deferred tax is not included in the stress test, so a further capital cushion for the Greek banks. The results of the third quarter are expected to be announced in early November, is likely to show a variation between the announced non-performing loans and those recorded in the stress test.
Posted on: Mon, 27 Oct 2014 16:14:58 +0000
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