Greek banks successfully completed their latest round of recapitalisation, resulting in an increase of private ownership across the sector. The high capitalisation should help mitigate loan quality risk and combined with the cleaning up of their balance sheet pave the way for a gradual recovery of profitability in 2016-2017. However, a lot depends on the macroeconomic and political situation. The banks’ ability to lower deposit and operational costs as well as cope with the large stock of non-performing loans will be the main drivers. Business File reports.
Read more: Greek banks aim for a gradual return to profitability in 2016
