Piraeus Bank to Respond to Reported Regulatory Violations Found in Audit

Piraeus Bank said it will respond to a draft report from a Bank of Greece audit that found regulatory violations in the 2014-16 period, and that a final report from the central bank would follow thereafter.

Piraeus shares came under selling pressure last week, prompting the bank to say it did not expect any material impact on its capital and finances from the findings of the central bank audit, which sources have said found violations by a number of its bankers.

Responding to a query by the securities regulator, Greece’s largest lender by assets said the audit, which started in February and was concluded in July, focused on regulatory framework and risk management procedures, as well as on “special credit issues”.

“Piraeus Bank cooperated fully and constructively with the Bank of Greece during the audit process,” the bank said, adding that it will respond to the Bank of Greece “within a specific timeline” and that a final report from the Bank of Greece was expected to follow.

Piraeus shares were down 5.6% to 2.87 euros as of 0913 GMT, to lag the Athens bourse’s banking index.

Source: Reuters