Bank stocks battered on widespread uncertainty

Local banks' stocks came under great pressure over the week, as investors remain nervous about the medium-term future of the country's credit system.

The big issue of nonperforming loans and meeting their reduction targets, uncertainty regarding the outcome of next spring's stress tests and worries about the impact of the new accounting standards (IFRS 9) that will lead to increased provisions for new bad loans are all causes for concern among investors.

Analysts say that the country's uncertain prospects after the completion of the bailout program in August and the course of the current bailout review are adding to the jitters in the market. They note that no convincing answers have been provided yet as to how Greece will get along in the post-bailout period, and no one believes the country can proceed without any form of support. This is why many investors are opting...