Seeking Alpha

Can the Greek banking sector deteriorate further? Yes, says Moody's in a new report: declining...

Can the Greek banking sector deteriorate further? Yes, says Moody's in a new report: declining domestic purchasing power and liquidity" will be exacerbated by government spending cuts and rising joblessness, crippling consumer's "repayment capacity" and ultimately leading to non-performing loans above 30%. Furthermore, Moody's warns risky Greek government bonds comprise 87% of the sector's Tier 1 capital and "estimates €8B of further capital" will be needed to cover loan book loses.
Comments (3)
  • Read this afternoon's Greek newspaper and article said that the Greek Bank recap is progressing. As I kept reading the article it was saying how nice the banks are improving. I just don't know what to believe anymore. So where are the articles that some of the 27% of youth unemployed will not have problems finding jobs. I guess they forgot to write about that. What a mess.
    18 Apr 2013, 04:26 PM Reply Like
  • Banks and bank capitalization lead employment. Banks need to be solvent before they can lend, and lending is part of what drives economic growth.

     

    That said, I don't buy that the banks are becoming solvent....
    18 Apr 2013, 05:37 PM Reply Like
  • when the banks are capitalized with sovereign debt...its not good...we know what that is worth.....
    18 Apr 2013, 04:39 PM Reply Like
DJIA (DIA) S&P 500 (SPY)