Acquisitions of banks through express procedures

Bank assets can be transferred to other banks via express procedures and based on the provisional assessment of the Bank of Greece, in emergency cases. That is only when a bank is unable to function in the absence of funds or in cases such as that of Proton Bank.

This provision is included among many other issues regarding the regulation of pending issues in the implementation of the mid-term. Everything will be regulated by a legislative act to be presented in parliament early next week.

This specific provision regarding the transfer of assets of banks essentially provides that instead of "breaking down" as was the case with Proton Bank, assets of banks facing operational difficulties can be transferred to another bank on the basis of both regular and occasional checks that the Bank of Greece conducts on all other banks.

The provisional assessment and express processes will determine the amount of the consideration required to be submitted as an offer by the bank which will receive the assets transferred from the other bank, as banks are listed on the Stock Market and transfer of data or mergers should occur with an exchange of shares under the temporary valuation.

According to information, from audits conducted on a regular basis, problems allegedly arise mainly in small banks which are also easier to be absorbed by larger ones. Developments in the banking sector are expected immediately, while it is obvious that the nationalization of banks, either indirect or temporary, should be deemed a given.

Finally, it should be noted that the legislative act also provides for the one-year extension of the ban on auction by credit institutions to protect borrowers who are unable to meet their debt obligations in view of the ongoing crisis and downturn in the economy.