Friday, February 6, 2015

Greek Credit Institutions: Liquidity constrained?

Been away for a while due to studying commitments...
Following the decision of the ECB about the eligibility of the Greek bonds, I was initially panicked, too. However, after Karl Whelan's post things got straight.

Now that I, finally, have some time, I checked the balance sheets of the four largest Greek Banks, from the 3rd Quarter (September 30,2014), with respect to the eligibility of collateral for weekly ECB MROs. These are the results, as well the depositsthese Banks owe:

Piraeus Bank Group (in millions of Euros) (link)
Greek Sovereign Debt: 567.1 
Other Countries Government debt: 358.5
EFSF bonds and non- Greek IOUs: 14, 438.4
Deposits (Liability): 54, 824

On Sep. 30, 2014 the outstanding repo transactions - MRO, LTRO - with the Eurosystem (ECB & BoG) was 10 bn EUR; that is the Piraeus Banks had, at that time, absorbed liquidity of approx 10 bn from the Cebtral Bank - so, not that dependent after all.

Group of the National Bank of Greece (in millions of Euros) (link)
Greek Sovereign Debt: 905
EFSF bonds: 8, 677 
Deposits: 66, 904

Funding from the Eurosystem was 10.7 bn on Sep. 30, 2014

Eurobank Ergasias (in millions of Euros) (link)
Greek Sovereign Debt: 5, 556
EFSF bonds: 10, 088
Deposits: 40, 458

Collateralized funding from the Eurosystem was 9,7 bn as of Sep. 30, 2014. 

Alpha Bank (in millions of Euros) (link)
Greek Sovereign Debt: 3, 111.3
EFSF bonds: 4, 300
Deposits: 43, 077

On Sep. 30, 2014, funding from the Eurosystem ("Term deposits" of "Central Banks") was 12.6 bn Euros.

Finally, as far as the Asset-Backed securities Purchase Programme of the ECB is concerned, Greek Banks cannot participate with their mortgage loans (see here), with the exception of mortgage loans with the highest of the second-highest rating.

Overall, the four systemic Greek Banks seem to have adequate collateral to access the ECB refinancing operations; ECB liquidity provision operations.

Note: Greek government debt owned is, perhaps, that low because most of it has been sold as part of repos with the Eurosystem for refinancing purposes (MROs, LTROs).