Bank of Greece governor Yiannis Stournaras said the Greek banking system is shielded from developments at Deutsche Bank and there is no reason for concern. The BoG governor made this statement following a meeting with Prime Minister Alexis Tsipras at Maximos Mansion on Friday.
Deutsche Bank, Germany’s leading bank has suffered from plummeting stocks. Among reasons why the bank is suffering from financial setbacks is $14 million was requested by U.S. authorities for “misselling mortgage-backed securities before the financial crisis” according to AP. In addition it appears the bank’s current and former executive directors may be charged with financial crimes, according to Wall Street Journal, along with two other leading Italian banks.
Stournaras is confident the BoG won’t be enveloped in the same problems. “We have tools available to tackle unwanted situations which until recently we didn’t have,” the central banker said.
Stournaras said developments on the Greek economy are positive, adding it is in the country’s best interest to complete the second program review as soon as possible and that he was assured by the prime minister that this was his goal. He also briefed Tsipras on developments in the banking system domestically and abroad and the latest information on fiscal targets.
Asked about Attica Bank, he said the new management is now cooperating smoothly with the Bank of Greece, stressing that the central bank supports the management of Attica in order to proceed with its restructuring.
(With information from ANA-MPA)
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