The Bank of Greece on Tuesday called all commercial banks to take the necessary measures by the end of the year in order to raise their basic capital adequacy rate at 10 pct.
In a meeting between the central bank and the chief executives of National Bank Apostolos Tamvakakis, Alpha Bank Dimitris Mantzounis, Eurobank Nikolaos Nanopoulos, ATEbank Theodore Pantalakis, Hellenic Postbank Kleon Papadopoulos, Emporiki Bank Alain Strub and FBB Milt. Damanakis, George Provopoulos, Bank of Greece’s governor, briefed bankers over the main provisions of a revised memorandum covering the country’s credit system.

The central banker asked commercial bankers to take all necessary measures in order to raise their Core Tier I ratio at a minimum of 10 pct by early 2012. The majority of Greek banks operate with an average Tier I ratio of 10.4 pct, while similar pledges have been taken by central banks in Portugal, Spain and Ireland.

The meeting also focused on the quality of lending portfolio and particularly development of non-performing loans. Provopoulos said that the central bank, following the Basel II pylon, will hire an international auditor to inspect on banks’ portfolios. This procedure is made in cooperation with the European Union and the European Central Bank and it is expected to be completed by the end of November.