Greece - Banking SystemsGreece - Banking Systems
As of April 2016, the Greek banking system consists of a central bank (Bank of Greece, which is a Eurosystem-member central bank) and another 39 credit institutions. Eighteen credit institutions are based in Greece (eight commercial banks, 9 local cooperative banks, and one Loan & Consignment Fund), and 17 are branches of commercial banks based in other EU member states. Another four are branches of banks based outside the EU, one of which is Bank of America. Greek-owned banks command the lion’s share of the market with about 80% of total asset value. Foreign-owned banks hold 12%, and the remaining 8% is shared between specialized institutions and local cooperative banks. The top four banks control 90% of both the loan market and deposits. Greek banks suffered large losses in the March and December 2012 Greek debt restructuring operations (Private Sector Involvement – PSI), but have been recapitalized. Other notable developments in early 2013 include the acquisition of the Greek branches of three Cypriot banks (Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank) by Piraeus Bank. Piraeus has also signed an agreement to acquire Portuguese-owned Millennium Bank and in 2012 acquired the healthy assets of the public Agricultural Bank of Greece. Alpha Bank acquired Emporiki Bank, Eurobank acquired Hellenic Postbank and Proton Bank and NBG acquired FBB and Probank.
Following the implementation of a broad-based recapitalization program in 2012 and 2013 and a rapid sectoral consolidation, the banking sector largely stabilized in 2014. However, the economic uncertainty associated with the new government’s policies and the stalemate in negotiations with the country’s official sector creditors has led to a substantial drop in deposits and to heightened demand for Emergency Liquidity Assistance from the European Central Bank, on which Greece’s principal banks were heavily dependent as of May 2015. In November 2015, as part of initial implementation of the August 2015 ESM bailout agreement, Greece recapitalized its four major banks for a third time in five years. Large U.S. and foreign hedge funds participated in recapitalization of the principal Greek banks. The banking system remains unable to finance the national economy as over 40% of all bank-held loans are non-performing. Efforts to create an NPL market to service these loans – a requirement under the ESM agreement – have been halting. As a result, businesses of all sizes struggle to obtain bank loans to support their operations. Due to this constraint, international financial institutions, such as the European Bank for Reconstruction and Development, are now working to issue loans and bring additional liquidity to the Greek market. Deposits stood at €121.4 billion as of March 1 2016 , down slightly from €138.5 billion a year earlier. In the seven year period since December 2009 (when deposits picked at €237.5 billion), overall deposits have shrunk by a total of €116.1 billion. As of December 2015 the Banking Association listed the four systemic banks assets as: Piraeus €83 billion; National Bank €77.1 billion; Alpha Bank €64.9 billion; Eurobank €64.1 billion.
As of January 1, 2001, Greece entered the European Monetary Union (Eurosystem) and implemented its single currency monetary policy in Greece through the central bank, the Bank of Greece. The Eurosystem is comprised of the European Central Bank and the national central banks of European Union states that have adopted the euro. The Bank of Greece is also the depository for government accounts. The Bank of Greece acts as regulatory agent for the European Central Bank’s Single Supervisory Mechanism (SSM), which entered into force November 1, 2014. The SSM and the Bank of Greece, together regulate and supervise the commercial banking industry in Greece, as well as Greek banks operating outside of Greece, and approves the establishment of foreign banks in the country. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Following the implementation of a broad-based recapitalization program in 2012 and 2013 and a rapid sectoral consolidation, the banking sector largely stabilized in 2014. However, the economic uncertainty associated with the new government’s policies and the stalemate in negotiations with the country’s official sector creditors has led to a substantial drop in deposits and to heightened demand for Emergency Liquidity Assistance from the European Central Bank, on which Greece’s principal banks were heavily dependent as of May 2015. In November 2015, as part of initial implementation of the August 2015 ESM bailout agreement, Greece recapitalized its four major banks for a third time in five years. Large U.S. and foreign hedge funds participated in recapitalization of the principal Greek banks. The banking system remains unable to finance the national economy as over 40% of all bank-held loans are non-performing. Efforts to create an NPL market to service these loans – a requirement under the ESM agreement – have been halting. As a result, businesses of all sizes struggle to obtain bank loans to support their operations. Due to this constraint, international financial institutions, such as the European Bank for Reconstruction and Development, are now working to issue loans and bring additional liquidity to the Greek market. Deposits stood at €121.4 billion as of March 1 2016 , down slightly from €138.5 billion a year earlier. In the seven year period since December 2009 (when deposits picked at €237.5 billion), overall deposits have shrunk by a total of €116.1 billion. As of December 2015 the Banking Association listed the four systemic banks assets as: Piraeus €83 billion; National Bank €77.1 billion; Alpha Bank €64.9 billion; Eurobank €64.1 billion.
As of January 1, 2001, Greece entered the European Monetary Union (Eurosystem) and implemented its single currency monetary policy in Greece through the central bank, the Bank of Greece. The Eurosystem is comprised of the European Central Bank and the national central banks of European Union states that have adopted the euro. The Bank of Greece is also the depository for government accounts. The Bank of Greece acts as regulatory agent for the European Central Bank’s Single Supervisory Mechanism (SSM), which entered into force November 1, 2014. The SSM and the Bank of Greece, together regulate and supervise the commercial banking industry in Greece, as well as Greek banks operating outside of Greece, and approves the establishment of foreign banks in the country. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.