BoG: Lenders must improve quality of their portfolios
The governor of the Bank of Greece, Yannis Stournaras, has emphasized that despite the progress made by Greek banks on key fronts, challenges remain.
Speaking at the “Risk Management & Compliance Conference” on Monday, he highlighted the need for further improvement in the quality of their portfolios amid an environment of high interest rates and risks, primarily stemming from international conditions.
Stournaras noted that the challenges facing the banks include maintaining current profitability and strengthening their capital base both quantitatively and qualitatively. He added that, like all sectors, banks must respond to increasing geopolitical risks and adapt their operations to rapid technological advancements and climate change.
He also warned that the growing use of digital means in banking transactions exposes institutions to greater risks related to information systems, cybersecurity, and overall operational risks.
He stressed that the Bank of Greece has already drafted a legislative initiative emphasizing the need for a prudent strategy to combat money laundering and terrorist financing.
Stournaras concluded that the Bank of Greece, with its primary role in ensuring financial stability and preventing the use of the financial sector for illicit activities, will assume the responsibility of permanently representing the country’s supervisory authorities on the General Board of the Anti-Money Laundering Authority (AMLA).
