BoG Gov: ‘Warning bells’ over profitability, NPLs

Bank of Greece (BoG) Gov. Yiannis Stournaras has citing significant challenges that the country’s banking sector will face in the short-term period, as cited in the six-month “Financial Stability Review: December 2021”.

At the same time, progress is ascertained by systemic groups up until now, although bank managements must still show concern and attention to possible risks.

According to Stournaras, a strong recovery in Greece economic activity this year, in tandem with a looser monetary and fiscal policy followed in order to deflect Covid-19 pandemic repercussions, contributed to a distinct boost in conditions for liquidity.

At the same time, Greece’s central banker and former finance minister warns of a possible worsening of profitability and NPLs.

The entire report can be found here:

https://www.bankofgreece.gr/en/news-and-media/press-office/news-list/news?announcement=233dde60-7e0e-45b1-8ee3-8914f38b8cbc