BoG governor Stournaras: The Greek banking system is shielded from developments in Deutsche Bank

Bank of Greece governor Yiannis Stournaras said the Greek banking system is shielded from developments in Deutsche Bank and there is no reason for concern, following a meeting with Prime Minister Alexis Tsipras at Maximos Mansion on Friday.

“We have tools available to tackle unwanted situations which until recently we didn’t have,” the central banker said.

Commenting on the meeting, 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.

Commenting on non-performing loans (NPLs), he said banks now able to offer alternatives to cooperating borrowers, stressing that the “key” is for the borrower to be cooperative.