Portfolio management crucial for the stability of banking system, FinMin says

In a report submitted to Parliament, in response to a question of independent deputies Odysseas Voudouris and Paris Moutsinas over the possibility of lifting a ban on first home auctions, the Finance minister reminded that “a recapitalization of Greek

banks and a restructuring of the banking system aimed to safeguard financial stability and health operation of the financial system”.

He added that “a successful completion of these procedures was a crucial factor to boosting business activity and the real economy in general, while at the same time it is expected to support financial institutions to meet the demands created by non-performing loans”.

The report noted that beyond the need for available capital to deal any futures capital requirements, “financial stability is affected by factors such as activity in the real economy, quality of loan portfolios and risk management, therefore loan portfolio management is a key-factor for the medium- and long-term performance of measures of recapitalization, boosting liquidity and the restructuring of the banking system”.

Source: AMNA

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