S&P: The Three Stress Scenarios for Greek Banks and Capital Defenses

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The rating agency considered three possible crisesMore...

dnews.gr

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The first and most extreme scenario concerns a simultaneous "cannon" from large companies. The other two scenarios and what is more likely. S&P is putting three major "shocks" that could seriously test the resilience of Greek banks under the microscope, clarifying, however, that none of them is its base scenario. The house remains positive for the sector, pointing out that banks now have strong capital "cushions", have drastically reduced non-pe…

marketnews.gr

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S&P identifies three potential stress areas for Greek banks, but does not include a banking crisis in its baseline scenario. Instead, it maintains a positive view, as banks have strengthened their balance sheets, restored profitability and reduced problem loans. However, the concentration of loans in large companies creates common stress areas. The four systemic banks finance many of the same corporate clients. Large borrowers In particular, the…

Naftemporiki

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The liquidation of non-performing loans and the return to profitability have significantly improved the image of Greek banks. However, they have also left a new footprint on their portfolios: greater… S&P: Common borrower, common risk for Greek banks - ΙΝΑΦΤΕΜΟΠΟΡΙΚΙ

Capital.gr

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S&P sees three ways a serious banking crisis could erupt in Greece, although it stresses that this is not its base case. A less likely but more damaging trigger is a simultaneous default by several of the top 10 corporate borrowers. Another possibility is a cyclical downturn in the sectors that have led the Greek economy to recover. However, a more likely trigger is repricing rather than default. Widening spreads on Greek government bonds or ref…

insider.gr

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The agency describes the high concentration in a few corporate clients as a structural vulnerability of the Greek banking system. At the same time, however, it underlines that banks currently have stronger balance sheets and could absorb even quite adverse credit shocks.