Goldman Sachs: Greek Banks have Limited Ability to Withstand Shocks

Greek banks have a limited ability to withstand external or internal shocks, a Goldman Sachs report says.

According to website, Goldman Sachs representatives were in Athens and had contacts with bank executives and policy makers in order to assess the currents state of Greek banks.

Greek banks reported on plans to reduce non-performing exposures (NPE) to 15-25 percent by 2021, from 48 percent in the second quarter of 2018.

The report says that the ability of the banking system to withstand any shocks –internal or external, economic or political — remains limited.

Also, despite the fact that Greek economy is recovering, it is doing so at a very slow pace.

At the same time, the Greek economy overall shows robust economic dynamics, evident in the recovery in the housing market, the increasingly dynamic in the secondary market for the sale of NPEs, and a decrease in bad debtors over time.

However, the negative, as warned, is that the ability of the banking industry to withstand any shocks (internal or external, economic or political) – remains limited.