The whole truth about the capital needs of banks and deposits

Faced with the possibility of faithful execution of
its operational .
projects ... which is connected with the possibility of
economy to meet the expectations of mild
recovery appear after Greek banks and
diagnostics of BlackRock.
Capital needs are displayed according to
informed sources completely manageable and
very close to the estimates that have been made for
amount in the range of 5-5.5 billion for the four
systemic . Amount more than offset by movements
that have launched within the business plan
who have submitted to the Bank of Greece . these
cumulatively estimated to bring in four
administrations Michalis Sallas , Stavros Lekakou
( Piraeus ) , George Zanias , Alexander Tourkolias
( National ) , Ioannis Kostopoulos , Dimitris Mantzounis
(Alpha Bank), George Christou and David Grand
(Eurobank) and cumulative revenue of around 8 billion
depth of four years . However , each of
has four different challenges and implementation
their plans to get these funds to
Funds are not in any case easy
case. As for the upcoming pan
stress tests carried out by the ECB in view of
common European Banking Supervisors image
according to banking circles is still positive
as these will be the capital adequacy ratio
8% as throughout Europe and not 9% as required
the Greek of the memorandum, at least until
in 2014 .
less pressure
And herein is the battle of bankers to apply the 8%
and the Greek stress tests which will
release further funds and remove the
pressure for fast execution of the business plan, which
include sales of assets such as
subsidiaries , equity , real estate and network segments
abroad , capital increases and reduction
costs by shrinking the network staff
and loan portfolios in general. something
But that translates into pressure on businesses
small and large and not by an increase in liquidity
market . This delicate balance will judge largely
and the health of the economy .
But it is not the state of all banks the same .
The greatest needs exhibited by Eurobank which
but is expected to complete successfully increase
capital of EUR 2 billion at the end of
First quarter , closing the chapter on
capital needs and the further
privatization . Moreover it has already proceeded to
disinvestment from Eurobank Properties and expected
implement and other similar movements may
with their insurance arm . It follows that the National
but has tremendous leeway and has already
also launched successfully moves the
revenue close to a billion.
Prominent here are selling rate of ' Pangaea '
and " Star " and portions of assets such as
under discussion transaction unit Asset
management. There is still the matter of finding the
model to be adopted for the use of
participation in Turkish Finansbank and the
network abroad in general.
open Discussion
Piraeus and Alpha appear better able than
but must also act accordingly . Piraeus
expected to have significant benefits from increased
General capital and selling units
as the Agricultural Insurance and other smaller
holdings. In Alpha Bank estimates that the Hilton
will be one of the assets to be disposed
while for the two latest banks important role
will play and model which will exploit the
networks in the Balkans . Still not " becomes final " in
if the banks will go on their trading so
keep each a strong presence in one or two
very countries or followed another road .
However, the sale of foreign banks shows very
difficult given the poor state in which
are and European banks in general. especially
those that have a presence in Eastern Europe .
We all go well and at the same time not
worsened the situation in Greece since then
the risk is not sufficient even
augmented funds . That is why
remains open to debate whether these should
regulatory capital requirements fall in
European 8% or remain at 9% (for some it
ensuring a sufficient even 10 %).
Provisions, shares and loans
Based on extreme assumptions , the bog down recession
-2 % To -2.4 % in 2014 and -1.1 % recession in 2015 while
for 2016 growth is projected at 0.8 % . In these
assumptions will be tested with the Greek stress tests are
banks . And to those that appear to cover
needs . Note that after market sources and
recent movements of banks estimate that the
regulatory capital ratios , are configured as
follows: The National displays index was 9.4% , the
Alpha Bank 13,5%, 13,5 % Piraeus Bank and Eurobank 8,1%.
At these prices , however, including
preference shares taken by the banks of the
Greek public and which should either be
return paying significant amounts either
prolong taking on higher costs . it
important problem is the management of red
loans as an attempt to end the crisis
Greek banks have adequately addressed the
hot issue.
What was decided on deposits
The December 11, 2013 will be considered in future one
the most important days in the life of European
consolidation since the outbreak of the debt crisis . and
That's because the 28 member states of the European Union
agreed in early - stage - at least for
single bank resolution mechanism . the rationale
Brussels based on a desire not to
pay for the rescue of troubled
European banks by taxpayers , but
shareholders , bondholders and depositors. the
latter , if they have in excess of 100,000 euros.
This decision will come into effect from 1
January 2016 .
Pending , of course , its adoption by Europeans
finance ministers next week,
definition of technical details and especially the
vote in the European Parliament. According to
Commissioner for Internal Market and Services , Michel
Barnier , the fact that no government will spent
Money for rescuing private
institutions " would be a key aspect of the way
crisis response "from now on. at
his view, the involvement of taxpayers will
is merely a bad memory of the past . The
British daily Financial Times, writes , for
example , that taxpayers have already paid
473 billion euros for the European banks
last five years .
PREVENTIVE MEASURES
The verdict states that all banks will
should draw up plans for possible future
emergency situations . At the same time , the authorities
need to ensure that they have taken all
preventive measures to address bankruptcy
them . These measures include a wide range
powers and tools that are now certain
that each bank can be problematic
reconfigured with respect to their
financial stability and protect
taxpayers . In particular , spending on
bankruptcy of some banks will be covered by
shareholders and creditors. The deposits under
100,000 euro exempt from any
loss . At the same time , deposits of natural
individuals and small businesses over
100,000 euros will have preferential treatment , without
however, be what it will be yet.
PROVISIONS
Plus, according to the verdict , the
banks in all Member States of the European Union
will be subject to harmonized provisions. the provisions
These will define both the manner in which
achieve their consolidation as sharing
cost . The relationship between the sustainability of
banks and financial strength in national
level will be weakened and the disparity
funding conditions for banks in Member
States will be thwarted . It 's simply a degree
flexibility for any potential systemic crises .
This , however , will occur in exceptional cases
without compromising the integrity of the single market .
SEEKING
It becomes clear that the basic aim of the Brussels
coming years will be to take responsibility for
cover losses to banks and banking
generally private investors . The flexibility needed
be treated from the outset the risk of systemic
crisis does not negate the obligation of banks to
have the ability distribution of their losses .
Public funds will be used only in extreme
circumstances. In this context , what is perhaps
the most important and already decided by the «28 »
associated with the obligation of banks to
create and fund