Liquidity data for greek banks. What do the three-year plans of the Greek credit institutions that submitted to European Banking Authority (EBA).
Specifically, Greek banks have a very high liquidity, which exceeds 77 billion euros, thanks to the increase in deposits and money received from the European Central Bank (ECB).
In the year and a half since the outbreak of the pandemic (January 2020 to July 2021), new deposits of more than 30 billion euros have flowed into the funds of the country’s credit institutions from businesses and households (30.3 billion). as the stock of deposits from 142 billion euros has successfully reached 161.7 billion euros, approximately.
Greek banks: What do the four systemic banks have?
In addition, last July the four systemic banks National, Piraeus, Eurobank and Alpha Bank, had absorbed liquidity from the ECB which reaches 47 billion euros (46.9 billion euros). An amount that, if added to that of the increase in deposits, raises the total liquidity of the system to 77.2 billion euros.
On the other hand, as the data of the Bank of Greece (BoG) show, a very small part of this liquidity has been directed to the real economy and this indirectly through the borrowing that the Greek State has received from the credit system. On the contrary, the net flow of loans from banks to businesses and households from the beginning of the year until July was negative. Banks apparently did not stop disbursing new loans during this period, but these “at the end of the day” were less than the amounts they collected from the borrowers to service their debt. Thus, from the beginning of the year to July, according to the BoG data, the net flow of financing to companies was negative by 134 million euros.
However, at the same time, the Greek State seems to be the big beneficiary of bank lending as the net flow of funding to the General Government reached 16.1 billion euros.
As for the dependence of the systemic banks on the Eurosystem (ECB), which reached 47 billion euros in July, it is mainly money that Frankfurt has with a negative interest rate (-1%) through the financing program (TLTRO).
In practice, that is, it is a subsidy and not a lending to banks by the ECB, in order for them to in turn contribute to the financing of the real eurozone economy. The access of the Greek banks to this tool started in March 2020, when the ECB decided once again to accept as collateral the Greek Government bonds for the financing of the banks.
source: ΑΠΕ – ΜΠΕ
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