Teams of the ECB's Single Supervisory Mechanism (SSM) are in Athens, as they held meetings on Friday in order to gain an overview of the domestic banking system. According to BnB Daily, the SSM officials were briefed on the progress of Greek banks and have gained positive insight into their dynamic growth. Besides, the story has changed, and from where banks were a drag on the economy, they have now become a growth accelerator.

DIVIDENDS 

The fact of the return to normality, as SSM officials have found, is the dividends they are paying and their plan to return more value to shareholders. At the same time, high on the agenda of discussions are the red loans, with the SSM noting that the situation is improving and banks have significantly reduced their exposures. However, steps still need to be taken to reach convergence with the European average. Our country is still at the top of the ranking, as it maintains the highest index in Europe.  

THE FACTS AND THE RENEWED TAX 

Greece had an NPL ratio of 3.42% in Q2 2024, with the 2nd on the list, Spain, at a significantly lower 2.79% and the European average at 1.92%. Another issue that the SSM is looking at is deferred tax, with banks seemingly moving to make larger payments and amortize it quickly; otherwise, there may be "comments" and the plan for increased dividend yields may be reversed.  

THE POSITIONS

It is recalled that on October 8-11, the representatives of the European Commission and the ECB will be in Greece for the post-programme supervision. The same issues will dominate these meetings, but red loans as well as bank loans and credit expansion are likely to receive more attention.