“Freno” puts a brake on the share capital increase of Pankritia Bank, as a result of which the whole plan that includes the merger with the Cooperative Bank of Chania and even the absorption of HSBC’s operations in Athens is put in jeopardy. Plan which will make the bank the largest non-systemic bank in the country.
According to persistent news site reports, the personal feud between the Governor of the Bank of Greece Giannis Stournaras and the banker Michalis Salla is returning from the past, after a few years of truce.
The personal conflict between the two bankers this time is centered on a person of complete confidence of Michalis Salla, who participates in the Board of Directors of the Bank of Pankritia and who the Bank of Greece has reportedly deemed as not meeting the conditions in terms of Fit and Proper. According to the reports, the Capital Market Commission addressed the BoE in order to give approval for the members of the Board of Directors of Pankritia regarding Fit and Proper and the BoE responded with impressive, for a Greek authority, speed, negatively regarding the specific member of the Board of Directors Council which is connected to the strategic investor Michalis Salla.
The management of the bank to which the Capital.gr made it clear that the specific member’s CV fully meets the required conditions since he has many years of experience in the banking sector and as is obvious his only flaw… is his personal relationship with Michalis Salla.
The Bank of Greece’s decision resulted in the Capital Market Commission suspending the approval of the Bank of Greece’s prospectus for the increase of the share capital until the resignation of the specific person connected to the strategic investor of Bank of Greece, who has been targeted by the Mr. Stournaras.
The information referred to in the specific publications allegedly comes from the Administration of the Bank of Greece, which, if true, irreparably exposes the Central Bank which, instead of exercising its institutional role, is consumed in personal feuds that damage both the National Economy and its prestige of the institution.
On this basis, questions arise as to whether Mr. Stournaras does not wish – and possibly never wished – for Pancreatia Bank to become a strong banking pole and therefore to contribute substantially to the development of the national economy but above all of business life in Crete.
It is obvious that questions are raised about the practices of the independent supervisory authorities since in the end the supervision is practically ineffective for the sector and the place but also raises essential questions in relation to its objectivity.
According to Pankritia Bank sources, it would be desirable to finally overcome this formal issue as soon as possible in order to enable a bank with 85,000 shareholders to complete the Share Capital Increase as well as its development plans and not constantly encounter obstacles from the central independent authority which stands in the way instead of being a helper in the development effort.