BoG governor Stournaras: Greek banks’ capital position is particularly strong

Greek banks’ capital position is particularly strong, Bank of Greece governor Yannis Stournaras said, addressing an event organized by the National Bank of Croatia in Zagreb.

In his address, Stournaras added that actions taken so far in the non-performing loans issue will further improve banks’ capital position and stressed that banks in the Eurozone have improved their capital adequacy rates to around 14 pct currently, from around 8.0 pct in 2008. He underlined the need to review an existing bank supervision framework in the coming years and stressed that challenges ahead lied with completion of a Banking Union. Another challenge was increased burdens on banks to adapt to a new regulatory framework as a demand for greater transparency is accompanied with higher costs. Another challenge is to widen the supervision field as banks have activities in a number of sectors, such as securitization, repos, collateral management and derivatives. Stournaras stressed that another challenge was the role of the central bank as a lender of last resort for the banking system.