Symbol go
GD         Turnover  mln.
COMPANY NEWS

Piraeus Bank: Mergers Not Panacea

  e-mail

Bank mergers are not a panacea, however create better conditions in terms of administration and cost cutting, said Spyros Papaspyrou, Deputy CEO of Piraeus Bank, speaking at the 11th annual conference Bank Management in Athens. 

Lack of liquidity and loan aversion are key features of market nowadays, however banks can offer to private sector, but the individuals are unwilling to borrow because of uncertainty, said Papaspyrou, adding that reduction in lending concerns mainly businesses. 

He stressed that the ongoing deleveraging and overall environment lead to a reduction in bank revenues.  

The Deputy CEO identified solutions in search of a sustainable model for private banking in Greece. The solutions include the downsizing, targeting at smaller groups of customers, exploitation of new trends such as online banking and smartphones, advisory services and financial planning, development of online services, and outsourcing, which refers to only 10% of total revenue in Greece, while the corresponding amount in Europe reaches 70%. 

Finally, Spyros Papaspyrou called the increase in capital cost as banks’ major problem, as it is tough to achieve returns to cover the capital cost, under present circumstances.

Follow Capital.gr to Social Media
  Did you find this article interesting?: