In order to identify the factors influencing the performance and rating of Greek commercial bank institutions during the study period, the goal of this book is to investigate the general condition fluctuation of those institutions. In addition, the Non-Performing Loans Portfolio (NPLs), a significant problem for the global financial system following and during the financial crisis, has had a significant impact on the Greek banking industry in recent years. As a result, its interrelationships and potential effects on the profitability and general effectiveness of the Greek banks have been examined.
Greek banks were forced
to engage in business transactions such share capital increases, mergers, and
acquisitions due to the shortage of liquidity, inadequate capital, and ongoing
decline in profitability.
The goal of the study
is to use CAMELS rating technique to conduct a thorough and comparative
analysis of Greek Commercial Bank institutions listed on the Athens Stock
Exchange Market between 2006 and 2012. Additionally, using ratio analysis of
the National Bank of Greece, Piraeus Bank, Alpha Bank, Eurobank, Attica Bank,
and the Co-operative Banks of Epirus, Crete, Thessaly, and Serres, as well as
other banks, it has been empirically investigated how non-performing loans
affect banks' performance and their profitability in 2017.
Business transactions,
such as the issuance of long-term debt, have a significant impact on the banks'
performance as measured by the CAMELS rating system. The findings, which were
cross-tested using a panel data analysis and the Fixed Effects Model, show that
there was high profitability, liquidity, and capital adequacy prior to the
crisis period, from 2007 to 2009, with statistical significance for all of the
traditional ratios. In contrast, during the financial crisis in Greece from
2009 to the present, Sensitivity and Liquidity were the only rating factors
that offered insight into the banks' financial situation.
The analysis's
conclusion focused on the relationship between loans and outflows, the
extensive use of linear regression to manage the consequences of loans, and
lastly the impact of lending on banks' financial performance.
In contrast to
interest-related expenses, which have an asymmetric distribution, interest
revenue on loans is positive for all banks but varies greatly. Aside from
Piraeus Bank, which exhibits an exorbitant pricing, past-due loans for more
than 90 days are uniform. Loans and ROA and ROE do not correlate in a
statistically meaningful way.
All loans, excluding
regulated loans, have an impact on equity, and this impact is regarded as
statistically significant. The impact of NPLs on Net Profit before Tax for
periods longer than 90 days is deemed statistically significant.
Author (s) Details
Mihail Diakomihalis
Department of
Accounting and Finance, University of Ioannina / Hellenic Open University,
Psathaki, 481 00 Preveza, Greece.
View Book :- https://stm.bookpi.org/BSNPLFCEG/article/view/7753
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