The banking sector in Greece is facing unprecedented pressures, both in terms of liquidity and profitability, stemming from the fiscal and macroeconomic deterioration in Greece and the multiple downgrades of Greece’s sovereign rating. The local banking sector has received both capital and liquidity enhancement through government guaranteed schemes in order to counterbalance its inability to access the international wholesale markets, the significant deposit outflows and the erosion of collateral. This has effectively resulted in an increased dependency of the local sector on ECB funding.
The Greek banking sector is expected to continue facing challenges and to undergo some important restructuring developments such as, a series of mergers and strategic alliances, network and operations rationalisation, loan portfolios restructuring and process and efficiency improvements.
The topmost banks are major audit and non-audit clients of PwC in the Greek Banking & Capital Markets Industry.