Tuesday, March 8, 2016

Greece’s Piraeus and Attica banks probed over recapitalisation

by Kerin Hope

Financial Times

March 8, 2016

Two of Greece’s biggest lenders are being probed by the eurozone’s banking watchdog in connection with last year’s €14.4bn recapitalisation of the sector, which was as a condition of Greece’s latest international bailout.

Piraeus Bank, the country’s largest lender, and Attica Bank, its fifth-largest, are under scrutiny by the European Central Bank’s single supervisory mechanism in its first audit of Greek financial institutions since it was set up in 2013.

The probe was launched after shareholders in both banks privately voiced concerns over possible irregularities in the latest round of capital raisings, say bankers involved in the procedures.

Two teams of investigators from the SSM are due to arrive in Athens this month.

The SSM supervises Greece’s four systemic banks while the Bank of Greece, the central bank, supervises smaller lenders including Attica.


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