Bank of Greece Issues Warning on Bad Loans



The banking system is still susceptible to external financial dangers, the Bank of Greece (BoG) warned in a review of the Greek financial sector released this week.

Although Greek banks have significantly strengthened in the January-September 2017 period, they must not relax their efforts, it warns.

The BoG called on banks to adapt to new challenges, especially by adopting new accounting models and handling more rigorously exposures to non-performing loans (NPLs).

The existence of a capital buffer is positive, the BoG said, but it still called on banks to intensify their efforts and meet their targets of reducing NPLs.

“Βanks [should] proceed to more drastic decisions, especially in terms of actions to restructure viable businesses, locate strategic non-payers, and apply a final solution to non-viable businesses,” the BoG report claimed.