Central bank probe not expected to have ‘material financial or capital impact,’ Piraeus Bank says

In a follow-up announcement released on Wednesday, Piraeus Bank said it did not expect “material financial or capital impact” as a result of an ongoing inspection by Greece’s central bank.

“Further to yesterday’s press release, Piraeus Bank would like to clarify that it does not expect any material financial or capital impact to arise from the supervisory inspection conducted by the Bank of Greece in relation to legacy issues of adherence to the supervisory framework and internal policies,” the press release said.

In its press release on Tuesday, in response to reports in the media about the central bank’s probe, Piraeus Bank said that it had not received the Bank of Greece inspection report and that “our corporate governance framework would not allow us to comment on any issues whilst they are under scrutiny or are being investigated by the authorities.”

“Our aim and policy is to fully cooperate with the relevant authorities that are conducting the audit,” it added.

The press release also noted that Piraeus Bank had recently concluded a full overhaul of its Board of Directors and its committees, “and is operating in accordance with best international practices in Corporate Governance.”

The bank announcements were issued in response to a report in the Greek daily newspaper “Ethnos” on Tuesday, which said that the central bank’s audit found that some bankers employed by Piraeus Bank had been involved in regulatory violations from 2014 until last year.