Positive assessments that the Ukrainian crisis will not lead to an increase in red loans expressed at the Moneyreview Banking Summit panel with the CEOs of the four systemic banks.
In any case, it was stressed, banks are monitoring the impact that inflation will have on servicing loans.
Pavlos Mylonas: We have eaten the donkey …
Pavlos Mylonas, CEO of the National Bank, estimated that the Greek economy will show some slowdown, after the high growth rates of 2021, but expressed optimism that in 2023 and 2024 the lost ground will be restored.
“We have eaten the donkey, the queue is left for the red loans,” he said, stressing that with the banks’ funds at these levels, no one disputes that they can complete the race.
“I estimate that overall we will not see an increase in red loans,” said Mr. Mylonas, adding that banks will play an important role in consolidating red loans that have gone to funds.
The CEO of the National Bank also said that in recent years there has been a large credit expansion, but this was not reflected in the investments.
“The question is why there is no more investment. “Financing is there,” he said, adding that “small businesses are one thing, reforms are the second. It takes effort here. “
Referring to the technological developments in the banking sector, Mr. Mylonas stressed that digital banking will expand, as he described it as “the future”. “Our relationship with fintech is not competitive,” he clarified.
Fokion Karavias: The conditions do not favor the recovery of the investment level
Fokion Karavias, CEO of Eurobank, predicted a slowdown in the economy, but manageable, as he pointed out that the developments undermine at a European level the positive narrative we have had so far.
According to the CEO of Eurobank, the conditions do not favor the recovery of the investment level from the country. “The effort must be multiplied. “We must make concerted efforts to regain the investment level,” he noted.
On the red loans front, he said the first stage, perhaps the most important, to tackle the problem has been completed. The second stage has to do with the rapid restructuring of loans that are sustainable. This is being done at a good pace, he noted, stressing that auctions that are a key part of the bankruptcy process must proceed for all categories, except vulnerable households. The third stage for a complete solution to the problem of red loans is the loans that become viable to return to the bank balance sheets.
Regarding the possibility of creating new red loans, Mr. Karavias said that family budgets are under particular pressure from the high cost of energy and inflation and banks should closely monitor whether this will affect the servicing of loans.
At the same time, he expressed the finding that banks have the resources to support the real economy. “Will the investment plans be found? The messages are positive. “We are here as banks to support this effort,” he said.
Christos Megalou: “We can achieve the goals”
Referring to the Greek economy, Christos Megalou, CEO of Piraeus Bank noted that it is an economy that will grow faster and more than the Eurozone. “If we do the other things right, we will be able to achieve the goals,” he said, noting, however, that “we have to deal with the huge debt to GDP.”
On the front of red loans, the CEO of Piraeus Bank pointed out that 2021 was a very important year on this front. “We were given the opportunity with quick moves to make one of the biggest balance sheet clarifications in Europe”, saying that this was made possible mainly by using “Hercules”, but also thanks to other actions.
Mr. Megalou spoke about the bank’s plan to reach a single-digit number of red loans by 2022 and estimated that despite the uncertainty due to the current situation, the indications for new red loans are rather positive.
Speaking about business financing, he noted that banks have also become business consultants, as they take initiatives with online events but also speaking to companies.
In terms of technological developments, he noted that Piraeus Bank is trying to be digital and is working with Microsoft to transfer all of its banking to a cloud environment.
Vassilis Psaltis: “We are entering the crisis with stronger balance sheets”
Vassilis Psaltis, CEO of Alpha Bank, expressed the assessment that the shocks in the economy will be absorbed, predicting that the economic activity will be supported by a good year in tourism but also by the very important accumulated deposits.
He admitted that the energy crisis will be more violent and longer lasting, but stressed that it is not a Greek phenomenon. For Greece, he noted that it should not deviate from the goal of the investment grade.
“We are entering the crisis with stronger balance sheets compared to two years ago,” said the CEO of Alpha Bank, noting that in 2020 and 2021 there were leaps in the issue of red loans, with the help of the state.
Considering that the fiscal easing is likely to continue, perhaps not with the same intensity, he expressed the view that the risk of new red loans is rather limited.
“We will be in single-digit number of red loans at the end of the first half,” he said.
On the lending front, Mr. Psaltis noted that the bank must manage liquidity prudently. “Our role is to fund healthy businesses,” he said. “The Recovery Fund, together with other European funds, is a unique opportunity to fill the financial gap left to us by the crisis,” he added.
As for Alpha Bank’s strategy, it has two parts: Large investments in technology and cooperation with fintechs that can provide specialized solutions, he said.
moneyreview.gr
Follow Skai.gr on Google News
and be the first to know all the news
