This week Morgan Stanley gave a balanced picture of the Greek banking system, which contained even…
a number of positive assessments, against the gloomy forecasts prevailing in the last period. This analysis came out in view of the results in the second quarter of the banks, which will be made public in the last few days of August.
The analysis gives a very clear chance, and here is the great importance for the future of Greek banks, speaking of a gradual improvement of quality indicators, such as net margins (NIM), but also those that have to do with the interest rate income (NII). Estimates, in fact, that there has been an increase in deposits of 1%.
All this, combined with a higher valuation, which states that it can recover the Greek banks, they create a completely different picture in relation to what is being said and written about the fourth recapitalisation, which is a potential threat, as there is already inertia in the management of red loans.
It is characteristic of the predictions of the house for a positive profitable result after several quarters of the group of Piraeus, which is expected to be confirmed.
Of course, however, and the recognition of a house that is not from those who often contradicted (Citi) is of great importance. I’ll say yes, if all this is confirmed by the results of the next few days, that this analysis is great, but the last opportunity for the banking system to stabilize and stand on its feet, regaining the confidence that has been tested the most by the end of 2014.
This, however, will require better cooperation of all parties in order to find solutions sustainable for all. The banks have two lines: the first has to do with the return of the deposit and the second with the best possible management of red loans. Of course, and this, in addition to the ordinary borrowers network, it comes to areas such as business, where the appropriate moves have not moved on. For example, listed companies which have negative net positions and do not serve to almost nothing, they continue their operation with the shareholders to perform the νήσσαν. In the case of Marinopoulos has proved that, when mobilised in the system, can quickly provide effective solutions.
The banks have also been recapitalised already three times through three memoranda, the weight of which they have been subjected to the ordinary citizen and the society as a whole, and this is the most critical issue that you need to reflect on those who give the orders. Why can’t you ask the guy who pays extra taxes and reduced constantly, remuneration and pensions to respond to what you think about to ask. Especially when you, as a bank, you can’t refinance the economy by having a de facto relationship lending-to-deposit ratio that surpasses even the 160%.
Here, however, the government headquarters to review too many things, as well as the very high taxation and the course of the contributions inevitably will lead those who are struggling to stay alive to choose the consistency to the Public if they can’t cover everything the banks ask them. There is still time to stabilize the Greek banks and avoid dramatic developments that will pay, and will cost politically to the government.
This, however, will require larger and αÏμονικότεÏες partnerships in the management of problems and, mainly, the participation of people who are aware of the problems.
Source
The chance for the survival of Greek banks
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