Banks eager to hear stress test parameters

The parameters of the adverse scenario stress tests scheduled in February on Greece's banks, with an emphasis on property values, will be at the focus of talks between the Hellenic Bank Association, led by Nikos Karamouzis, and the head of the European Central Bank's Single Supervisory Mechanism (SSM), Daniele Nouy, on January 15.

The meeting will take place in the context of regular contacts the HBA intends to have with regulatory authorities, but acquires greater significance as it will contribute toward determining the criteria for the baseline and the adverse scenarios on which the Greek lenders will be tested.

Local banks are eager to be told the parameters of the adverse scenario, which it seems will be more challenging than that used in the previous stress test. Sources in the know explain that this is due to monitoring authorities' efforts to increase the tests'...