https://toarcheio.org To Archeio project site Thu, 30 Apr 2020 15:23:31 +0000 en-GB hourly 1 https://wordpress.org/?v=5.4.1 https://toarcheio.org/items/is-a-bad-bank-solution-for-a-possible-future-greek-banking-crisis/ Tue, 16 Apr 2019 22:25:14 +0000 http://arc.local/items/is-a-bad-bank-solution-for-a-possible-future-greek-banking-crisis/ Continued]]> This chapter examines the “bad bank” solution for a possible future Greek banking crisis which might originate by the accumulation of non-performing loans in banks’ loan portfolios. “Bad bank” solution in Greece is apart from all a funding problem and it is not the best solution to be implied because the Greek economy and the Greek banking sector are in a very weak fiscal position. Greek enhancement programme of ε28 billion was not enough to stabilize the Greek banking sector and offer sufficient funding in the Greek economy. In order to prevent possible future liquidity crisis, there is need to improve liquidity buffer (safe assets) of the Greek banking sector which means higher capital adequacy standards to limit liquidity risk and implement better risk management. A combination of mergers and acquisitions would be the best solution.

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