Greek bank shares drop, deposits rise
(7 August 2015 – Greece) While Greek banks saw their shares drop by about 50 percent since trading began on 3 August following a five-week closure, deposits increased by around €1 billion (A$1.47 billion).
Greece’s four systemic lenders, National Bank of Greece SA, Piraeus Bank SA, Eurobank Ergasias SA and Alpha Bank AE, saw their shares drop by about 50 percent in the first three days of trading.
The European Central Bank (ECB) is due to lead a review of the quality of Greek banks’ books and a stress test will be completed by mid-October to help determine capital needs.
It is expected the banks will need larger leeway to help eliminate capital controls that were imposed in June.
European leaders’ have pledged to shore up the Greek banking system with €25 billion of capital, an amount analysts say should be sufficient.
Depositors won’t be called on to help fund the recapitalisations, which are due to be completed by mid-December, nor will levies be imposed on savings, the official said.
Existing bank shareholders have expressed interest in participating in the upcoming capital increases, the official said, without elaborating.
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