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Statement by George A. Provopoulos, Governor of the Bank of Greece on Stress Test

February 28, 2014

ENP Newswire - 28 February 2014

Release date- 27022014 - The Bank of Greece has recently completed a stress test exercise on the Greek banking system.

In conducting this exercise, the Bank of Greece adopted a conservative approach to ensure the credibility of the exercise. It may be recalled that BlackRock provided credit loss projections for banks' domestic loan portfolios for the Bank of Greece's 2011 stress test. For the present exercise, BlackRock again provided credit loss projections, but in contrast to the previous exercise, this time BlackRock assessed highly granular data for the banks' domestic loan portfolios, and also provided an evaluation of the loan books of the major foreign subsidiaries of Greek banks. In addition, the Bank of Greece used Ernst & Young and Rothschild as external advisers. In order to provide full transparency for all aspects of the exercise, next week the Bank of Greece will be publishing the stress test results, including details of the methodology and assumptions that were used. In the meantime, staff from the Bank of Greece will be meeting with staff from the European Commission, the European Central Bank, and the International Monetary Fund to discuss technical details related to the stress test methodology and results.

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Source: ENP Newswire

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