Bank of Greece abandons 9% core capital requirement

The Bank of Greece has abaondoned its plans to raise its core Tier I capital ratio for banks from 9%, sources at the central bank have revealed.

The core capital requirement was increased to 9% in February, with a deadline of September 30 for banks to meet the target. However, the central bank decided to temporarily reduce this to the previous level of 8%, with the intention of raising it once more when a new memorandum sets a deadline for recapitalisation of the banking system.

Costas Azariadis