Wednesday
18 October 2017
ADVERTS

Greek banks will suffer from new governance legislation restrictions

30 June 16 | Luca Katseli
Luca Katseli

DEALS

DATE BUYER SELLER
17 October 17 Credit Suisse Asset Management Legal & General capital
30 August 17 GLP J-REIT Global Logicis Properties

STOCKS

INDICES

MARKET WATCH

COMPANIES

Solum Property Solutions

Consultant - GREECE

IBI Group

Consultant - GREECE

ETAD.A.E.

Public entity - GREECE

Savills

Consultant - GREECE

PEOPLE

Antulio Richetta

Director IBI Group
Restrictive criteria of a new law on banks' corporate governance framework imposed one-dimensional management scheme to Greek banks, with board members having a limited and restricted field of knowledge and expertise, Louka Katseli, president of National Bank said on Thursday.

 

Addressing an annual general shareholders' meeting, Katseli said that adoption of such a model would raise very serious risks to an efficient implementation of challenges faced by Greek banks and undermined their competitive position in a competitive international banking sector.

A successful international practice, followed by all advanced countries and adopted by all large banking groups around the world, has become prohibitive for the country's banking sector, Katseli said, adding that a new corporate governance framework rightly promoted and upgraded banking skills that a board should be independent from the political system but at the same time it cut the necessary connection to the real economy and deprived the fully needed skills and expertise that a board has to have as a collective body to cope with new challenges.

National Bank's head said that the Greek economy showed mixed signs in the first months of 2016 with positive outlook, if a clime of economic and political stability was to be strengthened.

"Within an unstable European environment, an expected stabilization of the Greek economy and of the political environment, the first positive signs of recovery makes us cautiously optimistic.

If there were no new unexpected developments, if agreed measures were implemented fully with corrections where necessary and if fiscal and structural measures were included in a credible medium-term programme of productive restructuring, then we could look forward to a gradual but stable improvement of business and investment climate, of purchasing power and confidence in the economy and the banking system," she said. Commenting on National Bank, Katseli said that challenges were many and urgent.

National Bank's basic strategic goals were to recover and expand its profitability, to maintain its leading role in the country's financial system and to play a leading role in the restart of economic activity in the country.

The course towards sustainable profitability needs efficient and fast response to a series of challenges, such as the management of non-performing loans.

Comments

You must be logged in to make a comment
WAVE MEDIA OPERATIONS IKE © 2001-2017
Internet Business Hellas