ECB: 2018 stress test of Greek banks shows average capital depletion of 9 percentage points in adverse scenario

05 May 2018

The results of the 2018 stress test of Greek significant institutions show that the average capital depletion under the adverse scenario, which covered a three-year period and assumed static balance sheets, was 9 percentage points, equivalent to €15.5 billion.

The capital depletion stood at 8.56 percentage points for Alpha Bank, 8.68 percentage points for Eurobank, 9.56 percentage points for the National Bank of Greece (NBG) and 8.95 percentage points for Piraeus Bank.

The four banks underwent a stress test following the same methodology and approach as the EU-wide EBA exercise, but with an accelerated timetable in order to complete the test before the end of the European Stability Mechanism’s Stability Support Programme for Greece in August.

The stress test is not a pass or fail exercise. Its results, together with other relevant supervisory information, are used to form an overall supervisory assessment of the banks’ situation.

The stress test results were mainly driven by the following risk drivers:

• Credit risk: while the negative impact of credit risk on CET1 ratios was on average around 260 basis points in the baseline scenario, it increased to 850 basis points in the adverse scenario.
• Net Interest Income (NII): NII under the adverse scenario declined by 22.5% compared with the baseline scenario.

Press release

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