Banks expect to get better idea of the 2018 stress tests this month

Local bank managers are optimistic about the European Central Bank's upcoming stress tests and are certain that no new funds will be required. They tell Kathimerini that the new exercise is more standardized and definitely milder compared to the previous one, when the European experts examined the loan portfolios of domestic lenders in depth and tested their strength in particularly adverse recessionary scenarios.

Furthermore, after the signing of the new agreement between the government and its creditors, the uncertainty has been drastically reduced and the economy should revert to growth from the second half of the year, while the picture should be even better next year.

Senior bank officials acknowledge that the key point is bringing down nonperforming loans. They stress that the reduction targets set for bad loans in 2017 - and agreed with the ECB's Single...