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Michalis Sallas emphasized in an article-intervention the responsibility of the supervisory authorities over the strong pressure exerted on the systemic banks of the country. He mentions the failures, notes that, in the country and on the outside, the pressures of the authorities are exhausted during the sale of red loans without including the data on the development and draws the alarm bell as for the impact on the real economy.
He expresses serious reservations about the new design cycle, which, he says, will be based on "accounting manipulation and not a significant solution to the problem" and expresses the hope that things will not be further aggravated.
In the article published in Protagon, Mr. Sallas recalls that the size of the system banks has been in free fall for four years, "confirming a number of badysts who say that the problems facing the banking system do not are not solely responsible for the Great Recession, banks and governments and supervisors of credit institutions
As he explains, the authorities were called upon to propose solutions, to design rescue plans and to implement them largely, since they took charge of corporate governance. and the management of banks. "At the end of the day, banks have been turned into trading platforms and their success is the perpetual recycling of the crisis," he said.
In quoting the balance sheet figures, he said that from June 30, 2014 to June 30, 2018, under the mandate of Mr. Yiannis Stournaras to the management of the Bank of Greece, the results of the four major banks have literally dropped: their badets total was reduced by 31, 26% from 346.092 billion euros to 237.878 billion, while total equity fell to 26.453 billion euros, after a 28.5% decline over four years. "Even more impressive is the decline in equity, after deducting deferred taxes on equity, which decreased by 77.3%." Tangible equity, noted Moody's as of 30/06/2018, s & rsquo; Rose to 2.667 billion euros, up from 12.831 billion four years ago, down about 80%, "he said.
At the same time, he points out that the sheer volume of NPEs, depositors' leakage, capital controls and loan cuts have created a stifling ring that stifles banks. "These are problems that started with the crisis and turned into chronic malignancies because they were not treated effectively and on time." Much of the responsibility lies in the failures of many people, including institutions that did not help their decisions at the time, "he said.
And he continues: "But the problems have of course been aggravated mainly by the problematic interventions of the supervisory authorities from mid-2014. In the summer of 2014, the governments of Greek banks have repeatedly made proposals to fight against NPEs, which take into account both moral hazard and the Greek reality, in order to limit the damage while offering prospects.However, they have been constantly affected by the reactions of SSM , especially the administration of the Bank of Greece. "
According to Mr. Salla, an erroneous and punitive perception has developed, which has not only been proven by foreigners, but also by the Bank of Greece itself, which has not only tolerated it but also supported. Had the correct handling been done since then, and if the BoG had supported effective solutions, the landscape would certainly be different today.
A recent Bloomberg article, he recalls, criticizes the approach of the phased approach applied to Greek banks, badigns some of the responsibility to the supervisory authorities and proposes more innovative measures to break the circle. vicious. "The banking supervisory authorities, both at the level of the euro area and the countries, must know the problem in depth and take the measures that are required, proposing appropriate solutions." In the Greek case, everything indicates that authorities have failed, "he said.
Mr Sallas proposes that the Bank of Greece limit itself to its supervisory role by monitoring the corporate governance, restoring the functioning of its executive committee and allowing the bank administrations to carry out their tasks. "Finally, let's open the debate, review the proposals made in the past for red bonds, especially red mortgages, without the obsessions and prejudices that often seemed to characterize the decisions and moves of supervisors and compound the problem instead of the problem. solve, "he says.
"Greek banks, in decline and fragile, are struggling for their survival.The recent advent of their shares on the stock market and scenarios of preventive recapitalization, even more radical solutions, show that it is difficult to to find them, and they testify to the complete failure of the supervisory authorities, who were in charge of developing a roadmap for the exit of the banks through the labyrinth of the crisis. 'A new series of such plans is being launched by the supervisory authorities rather than the banks, which relies on accounting manipulation and is not a significant solution to the problem. do not get worse! "
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