Greek Banks Abroad: A Historic Examination

2019 ◽  
pp. 149-160
Author(s):  
Simeon Karafolas
Keyword(s):  
Greek Banks

The Basel II internal ratings based (IRB) model and the transition impact on the listed Greek banks

2020 ◽  
Vol 22 ◽  
pp. e00183
Author(s):  
Andreas Merikas ◽  
Anna Merika ◽  
Henry I. Penikas ◽  
Mikhail A. Surkov
Keyword(s):  
Basel Ii ◽  
Greek Banks

scholarly journals The economics of greek banks’ internationalization in the south east european transition economies

2013 ◽  
Author(s):  
Στέφανος Φωτόπουλος
Keyword(s):  
Economic Growth ◽  
Resource Allocation ◽  
Transition Economies ◽  
Output Growth ◽  
Push Factors ◽  
Policy Makers ◽  
Credit Supply ◽  
Domestic Capital ◽  
Greek Banks

This thesis deals with the economics of Greek banks‟ internationalization. The analysisfocuses on specific aspects of Greek banks‟ expansion over the previous decade, aperiod to which little attention has been paid by the pre-existing literature. Seven Greekbanks expanded into the transition economies of South Eastern Europe (SEE), namelyAlbania, Bulgaria, FYROM, Romania, and Serbia, from 2000 to 2009. As a result ofthis expansion, all multinational Greek banks have managed to gain significant shares inthe SEE banking market. The size and pattern of this expansion is analyzed in variousparts of the thesis.The determinants of Greek banks‟ expansion in SEE are examined in theEclectic Paradigm nexus. Considering the expansion in this nexus, the extent to whichGreek banks followed their home customers abroad from 2000 to 2007 is highlighted.Rejecting the “follow the customer” hypothesis for the specific period, the econometricresults provide interesting findings regarding the validity of the three sets of advantagessuggested by the Eclectic Paradigm. Regarding ownership advantages, Greek banks‟intangible assets are found to be more significant than the respective tangible ones,while location advantages exhibit the highest significance among all sets of advantages.More specifically, favorable host country economic and regulatory conditions are foundto have affected significantly Greek banks‟ decision to invest further in the lessdeveloped economies of SEE. Moreover, similarities between host and homegovernance conditions, captured in a unique way in this thesis, are also proved to havebeen a significant factor of Greek banks‟ expansion. Lastly, regarding internalizationadvantages, this analysis casts doubts on the validity of the specific set of advantages. Inreality, it seems as though Greek banks expanded into SEE economies in order to followprofit opportunities, rather than simply to follow their home customers abroad. This thesis also examines the impact of the expansion of Greek banks in the SEEon the host economies. For the needs of the analysis, the ways in which Greek banksaffect the host economies indirectly are considered, mainly through two channels; thebank lending channel (BLC) and the resource allocation channel. The role that Greekbanks have played in the BLC of the domestic economies and in domestic creditstability, along with the contribution of Greek banks to domestic resource allocation,appears to have been crucial for the economic growth of SEE.A descriptive analysis illustrates Greek credit supply and credit stability in thehost economies. Also, the response of Greek banks to adverse host conditions and thetransmission of home adverse conditions to the five transition economies are illustratedthrough a panel of “crisis windows”. A “pull – push factors” descriptive analysisindicates that Greek banks did not respond significantly to non-monetary host shocksbetween 2000 and 2009. Regarding push factors, the research revealed that the onlynegative shocks (generated back in Greece) that Greek banks have transmitted to theSEE economies have been over the last two years of the sample period. This analysisprovides evidence in support of Greek banks‟ role in domestic credit volatility, andtherefore, in credit stability. The issue is further examined econometrically in thespecific context of BLC.In order to examine the role of foreign participants in a domestic BLC, theoperation of such a channel operating in this region is initially tested. The VAR autorecursivemodel and the respective variance decomposition analysis indicate an activeBLC and the beneficiary role of the Greek banks in buffering the negative effectsrelated to a tightening monetary policy. Controlling for demand factors, the workindicates that the decline in credit supply during periods of monetary tightening was driven by the weakness of banks to provide credit rather because of reduced creditdemand.Greek banks, apart from being a credit stabilizer for the five host transitioneconomies, have played an equally beneficiary role in the resource allocation in thedomestic economies. In particular, the extent to which Greek banks have stimulated thereallocation of domestic capital thereby enhancing domestic output growth, isexamined. By employing interactive terms in a fixed effects OLS econometric analysis,results indicate that Greek banks have stimulated economic growth in SEE by supplyingcredit in the region. Not only was it discovered that competition in domestic bankingsystems, being intensified by Greek banks‟ penetration, is positively related to hostoutput growth, but that Greek banks enabled a more efficient reallocation of host capitaland in so doing, stimulated host output growth.In addition to filling a gap in the existing literature of Greek internationalbanking, this thesis also provides an analytical framework for policy makers in order toevaluate the openness of the domestic financial systems in emerging economies. It mayalso serve policy makers as a guide for encouraging the participation of foreign bankinginstitutions in their domestic markets

scholarly journals Efficiency and productivity of Greek banks in the EMU era

2009 ◽  
Vol 19 (16) ◽  
pp. 1317-1328 ◽  
Author(s):  
Georgios E. Chortareas ◽  
Claudia Girardone ◽  
Alexia Ventouri
Keyword(s):  
Greek Banks ◽  
Efficiency And Productivity

scholarly journals Disrupted lending relationship and borrower's strategic default: evidence from the tourism industry during the Greek economic crisis

2021 ◽  
Author(s):  
Panagiotis Avramides ◽  
Ioannis Asimakopoulos ◽  
Dimitris Malliaropulos
Keyword(s):  
Regional Variation ◽  
Alternative Interpretation ◽  
Tourism Industry ◽  
Bank Loans ◽  
Relationship Lending ◽  
Soft Budget Constraints ◽  
Limited Impact ◽  
Strategic Default ◽  
Greek Banks ◽  
The Impact

Using a sample of bank loans to firms operating in the tourism industry for the period 2010-2015, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of Greek banks consolidation on the firms’payment behavior. We show that a merger-induced impairment of the lending relationship is related to a higher likelihood of strategic default by the target bank’s borrowers. In contrast, mergers with a limited impact on the lending relationship have no effect on the probability of strategic default of target bank’s borrowers. The results highlight the importance of relationship lending benefits in strategic default decisions. Our findings are robust to the alternative interpretation of soft budget constraints.

Risk of Greek euro exit has risen but is still small

2015 ◽  
Keyword(s):  
Euro Area ◽  
Tourism Industry ◽  
Political Crisis ◽  
Content Type ◽  
Structural Problems ◽  
Current Contribution ◽  
Greek Economy ◽  
Greek Banks ◽  
Of Greece

Subject The prospects for Greek departure from the euro-area. Significance Since the political crisis of 2012, when the term 'Grexit' -- Greek exit from the euro -- was coined, the risk of such an eventuality has increased. The Greek economy would suffer enormous damage, while the euro-area would incur significant political and economic blows, including a contraction estimated at 1.5% of euro-area GDP, at the very least -- greater than the current contribution of the Greek economy. For Greece, a 20% contraction and a 50% erosion of average per capita income in euro terms are forecast. The new currency would be unlikely to promote exports, because of the high cost of imported machinery and intermediate goods, and the tourism industry would also be exposed to high inputs. Impacts Grexit would profoundly alter the economic and political profile of Greece, isolating it and shutting out external investment. Grexit would highlight persistent structural problems of Europe's monetary union, throwing doubt on its long-term soundness and viability. Membership reversibility implicitly reintroduces the notion of currency risk for the euro-area's most vulnerable peripheral countries. It would also destabilise such neighbours as Albania, Romania, Bulgaria and Serbia, where Greek banks have significant presence.

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