Greek deal won't save its banks

摘要

An eleventh-hour deal between Greece and its creditors to unlock desperately needed funds for the government and narrowly avoid default will not end the acute liquidity and solvency crisis being faced by the country's banks. Although a deal should halt a slow run on banks that has seen them lose €44bn of deposits - a quarter - since December, additional austerity measures that Athens will probably have to agree to unlock rescue funds could inadvertently exacerbate problems for the banks. Lenders including alpha bank, national bank of greece, piraeus and Eurobank are already under severe strain. With 40% of bank loans classed as delinquent, about two-thirds of all bank revenues are being used to provision for expected loan defaults.