The Bank of Greece reported that Deputy Governor Christina Papaconstantinou participated in the 10th Delphi Economic Forum, where she held a discussion with European Central Bank Single Supervisory Mechanism Director-General Korbinian Ibel on the resilience of European and Greek banks amid rising geopolitical risks. Papaconstantinou argued that, as uncertainty has become persistent, supervisory guidance on banks’ resilience is becoming more relevant. Ibel said European banks’ resilience has strengthened over the 10 years since the establishment of the Single Supervisory Mechanism, with improvements in capital, liquidity, profitability and asset quality despite repeated exogenous shocks and a challenging macroeconomic outlook. Both speakers pointed to Greek banks’ turnaround, citing a sizeable reduction in non-performing loans and higher profitability, while Ibel highlighted four key building blocks for resilience to geopolitical risks: adequate capital buffers, thorough clean-up of legacy assets, satisfactory profitability and strong operational resilience. Papaconstantinou also called for “more Europe”, including completion of the Banking Union and the Capital Markets Union, and framed single supervision as a positive model for other policy areas.
Bank of Greece 2025-04-10
Bank of Greece Deputy Governor discusses bank resilience to geopolitical risks and Greek NPL progress at Delphi Economic Forum
At the 10th Delphi Economic Forum, Bank of Greece Deputy Governor Christina Papaconstantinou and ECB SSM Director-General Korbinian Ibel discussed European and Greek banks' resilience amid rising geopolitical risks. Ibel noted improvements in capital, liquidity, profitability, and asset quality over the past decade. Both highlighted Greek banks' progress in reducing non-performing loans and increasing profitability. Papaconstantinou advocated for further European integration, including completing the Banking Union and Capital Markets Union.