The readiness of the banking system to assume its key role in relation to the TAA was mentioned, among others, by the General Manager of Wholesale Banking of Alpha Bank, Giannis Emiris from the panel “RRF in Greece: Progress & challenges” at the 7th Delphi Economic Forum.
Mr. Emiris initially focused on the issue of divestment in Greece, as he noted “in 2007, as a country, we invested about 27% of our GDP in various forms of investment, including housing, while in 2020 the percentage was slightly less from 12%, while in Europe the relative rate was 22% “.
He also added that the gap of 10 percentage points of GDP created an investment gap of Euro 100 billion, with negative effects on Greek entrepreneurship, such as, among other things, their reduced technological development.
He described the filling of this investment gap, which is necessary for the repositioning of the productive model of the country, as a challenge, noting that the TAA creates this possibility. “Alpha Bank, capital-strengthened, stands by entrepreneurship to make the most of this opportunity,” he said.
Regarding the financing of the economy by the banks, Mr. Emiris pointed out that “due to the amount of red loans, the credit expansion started essentially from 2019 onwards”, adding that in 2019, it was less than 2%, in 2020 with the help of the State programs to deal with the consequences of the pandemic reached 10%, while in 2021, it was close to 4%, a year in which companies raised very significant funds from the capital markets with the assistance from banks “.
“No issues of liquidity and capital adequacy in the banking system”
The General Manager of Wholesale Banking also added that there is no issue of liquidity in the banking system, as, especially in the last two to three years, deposits have increased significantly.
“A deposit base of € 35 billion has been hoarded for at least the last two years,” he said, adding that there was generally no capital adequacy problem in the banking system and that banks had largely addressed the issue of red loans they were holding. their hands are tied “, while for Alpha Bank he noted that inside
of 2022 will achieve a single-digit percentage in the ACE Index.
Alpha Bank Development AMK and risk appetite led to large takeovers
“Alpha Bank in 2021 proceeded with a development AMK, the first that takes place after many years in the banks, amounting to Euro 800 million, with which it discounted the possibility to capitally strengthen the companies and to give loans”, said Mr. Emiris, adding that AMK in combination with a necessary redesign (risk apetite), on the areas that the Bank wants to invest, allowed it to make large sponsorships, in order to provide its Customers with the assurance that their loan will proceed and in fact quickly.
“Indicatively, in the last 5 months we have implemented borrowings, over Euro 2 billion, loans of course which we will then sell to the banking system”, added Mr. Emiris, while pointing out that the benefit from the TAA comes from the extent that the loans will be important, but also long in duration.
Concluding, referring to the liquidity of small and medium enterprises, he underlined that Alpha Bank provides enhanced consulting support, with the aim of creating companies that will be competitive through partnerships and mergers and will be able to be more effective internationally.
Source: Capital
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