Bank Of Greece Sa · ATHEX:TELL
Bank Of Greece Sa — Alvarez & Marsal — Distressed loans in the Greek banking system (March 2016)
17 slides from Bank Of Greece Sa's conference presentation, Mar 10, 2016
Slide 1: The Banks' Internal Workout: Managing Distressed SMEs
THE BANKS’ INTERNAL WORKOUT: MANAGING DISTRESSED SMES INTERNATIONAL PERSPECTIVES Tom McAleese Managing Director Head of Bank Restructuring Europe Distressed loans in the Greek banking system - 10th March 2016
Slide 2: Introduction
| INTRODUCTION ALVAREZ & MARSAL <ReL
Slide 3: SME Market
SME MARKET SMEs are of significant importance to the Greek business economy providing c. 87% of all jobs and generating c. 75% of the total value added versus 67% and 58% for EU28 respectively. Enterprises (#) Employees (#) Value added (€) Companies by employee GR GR EU28 GR GR % EU28 % GR GR % EU28
Slide 4: Key SME Stakeholders for NPLs & Growth
KEY SME STAKEHOLDERS FOR NPLS & GROWTH Government and government bodies have a key role to (i) resolve the legacy NPL overhang in the Greek banking market and (ii) facilitate SME sector growth by attracting all forms of available financing for SMEs from traditional commercial banks to alternative fu
Slide 5: NPL Management
Il NPL MANAGEMENT ALVAREZ & MARSAL <ReL
Slide 6: NPL Volumes Remain Significant Across Europe
NPL VOLUMES REMAIN SIGNIFICANT ACROSS EUROPE NPL volumes across Europe reached €1.18trn in 2014. Cyprus, Greece, Ireland, Spain and Portugal and the majority of the CEE countries have ratios well above both the Euro (8.3%) and EU (8.2%) averages Cyprus 45.4 Greece 34.3 Serbia 23.0 Albania 22.8 Irela
Slide 7: Where Is the Silver Bullet?
WHERE IS THE SILVER BULLET? NPL build up must be released to avoid the restriction of financial flows to the business sector and thereby impacting the real economy Loans Real economy Repayment Clogged system NPLs Goods & Service Profit Breakdown in financing flow Un-Clogged system ● Asset purchase?
Slide 8: Overview of the Legislative NPL Framework in Greece
OVERVIEW OF THE LEGISLATIVE NPL FRAMEWORK IN GREECE In an effort to facilitate debt restructuring and effective NPLs management, there has been an increasing oversight of regulator / state towards NPL management from 2007 onwards. A number of important legislative and regulatory measures have been i
Slide 9: Case Study - SME NPL Management Pillars in Ireland
CASE STUDY - SME NPL MANAGEMENT PILLARS IN IRELAND NPL Management Pillars Central Bank of Ireland (CBI) Department of Finance Banks 6 NPL stages 1 Strategy Amend Insolvency & Code of Conduct for SARS bankruptcy legislation Business Lending to Insolvency Service of SMEs Ireland SME Arrears
Slide 10: Example: What Gets Measured Gets Done - Resolution Targets
EXAMPLE : WHAT GETS MEASURED GETS DONE - RESOLUTION TARGETS Loan Book Performance Process efficiency Previous 4 Quarters Current Q2 2012 Q3 2012 Q3 2012 Q4 2012 Q1 2013 Number of designated Risk Managers (RM) 4 5 5 5 6 Number of meetings performed per RM 5 5 6 6 7 Number of calls performed 422 452 4
Slide 11: Financing for Growth
Ill FINANCING FOR GROWTH ALVAREZ & MARSAL <ReL
Slide 12: Average Credit Value Gap per Enterprise
AVERAGE CREDIT VALUE GAP PER ENTERPRISE Greece has one of the highest average credit value gaps per SME enterprise out of 177 countries surveyed by the International Finance Corporation 1,200,000 Average Credit Value Gap (US$) 1,000,000 800,000 600,000 400,000 200,000 0 Source: Worldbank ● Of the 17
Slide 13: The Changing Financing Needs of Growing Companies
THE CHANGING FINANCING NEEDS OF GROWING COMPANIES 1. As companies grow, their financing needs change moving towards relatively formal forms of finance and capital market sourced financing. 2. The level of market maturity will depend on the types and forms of financing available. Source: The IIF / Ba
Slide 14: Case Study - SME Financing for Growth Pillars in Ireland
CASE STUDY - SME FINANCING FOR GROWTH PILLARS IN IRELAND Funding Growth Pillars Equity Debt Other Seed / Start-up: Pillar Bank targets - Government Enterprise Ireland 5 year funding payments protocol Seed & VC scheme targets (€33bn) SURE Tax Scheme ISIF SME Credit fund Supporting SME E
Slide 15: Strategic Banking Corporation of Ireland
STRATEGIC BANKING CORPORATION OF IRELAND 15
Slide 16: SME Future Considerations (NPL & Growth Strands)
SME FUTURE CONSIDERATIONS (NPL & GROWTH STRANDS) SMEs are a unique asset class due to intrinsic relationship with the domestic economy NPL resolution and growth strategies must be considered in tandem and co-ordinated by the authorities SME NPL SME NPLS Attributes Strategy • Multi-banked nature 1. E
Slide 17: Disclaimer and About Alvarez & Marsal
“The information contained in this document is of a general nature and has been obtained from publicly available information plus market insights. A&M has not met with any of these service providers as part of this engagement and has not visited any of the servicer providers sites. All of our source
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