Bank of Greece issues damning report on Attica Bank

The Bank of Greece has documented major shortfalls and omissions by Attica Bank in critical sectors, according to an inspection carried out for the ECB’s Single Supervisory Mechanism (SSM).

Problems were identified in Attica Bank’s administration, credit risk management and in computerized system. Irregularities were also found in the recent capital increase that was carried out as part of the bank’s recapitalization.

The Ethnos newspaper reports that the Bank of Greece report reveals how Attica Bank does not use an Excel system to calculate euribor interests, but rather does so manually. Attica Bank also does not appear to be in the position to respond to a major cyber attack, nor does it have the necessary back up system in place.

Furthermore, Attica Bank’s problems meant that about 72 million euros worth of non-performing exposures (NPEs) were not properly documented, which is the highest rate (57%) among Greece banks. Attica Bank’s loan portfolio amounted to 3.9 billion euros in March 2016, of which 2.2 billion euros were arrears.

The report also reveals that a number of loans were granted without the necessary rules and ethics being observed, while some have no legal coverage.

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