BoG: Banks better placed to withstand shocks now

The Greek banking sector is better placed than in the past to withstand potential shocks and perform its intermediation function, despite a slight deterioration in the asset quality of credit institutions, according to the Financial Stability Review released by the Bank of Greece on Tuesday.

In the first half of 2024, Greek banks posted profits after tax and discontinued operations of 2.3 billion euros, compared with profits of €1.9 billion in the first half of 2023.

This development was mainly underpinned by an increase in net interest and fee income, supported by fees from payment transactions and asset management.

The capital adequacy of the banking sector remained almost unchanged in the first half of 2024, as a rise in prudential own funds was offset by an increase in risk-weighted assets.

In particular, the Common Equity Tier 1 (CET1) ratio fell...