Small players seek share of credit sector

Procedures for the concentration of capital from small but developing banks are in full swing, with the focus on Aegean Baltic Bank (ABBank), Investment Bank of Greece (IBG) and Praxia. These three lenders are seeking to earn some space in the local credit sector by filling the gap that the four systemic banks have left in the crucial domain of financing the Greek economy.

The reappearance of smaller banks is favored by the gradual improvement of the macroeconomic environment and the need for healthy funding, just as the systemic lenders are focusing all their efforts on reducing bad loans and completing the stress tests.

Senior sector officers discern the opportunity for the creation of a parallel banking market, without the problems of the past, making the most of technology, like Praxia, and of the infrastructure already in place, as ABBank and IBG are doing.

Developments in the emergence of smaller banks will culminate with the upcoming sale of IBG, for which the process for expressions of interest has been granted a 10-day extension, until March 26. The extension is associated with the increased interest that is said to have come from both domestic and foreign investors.

Source: ekathimerini.com