Provocative distortion – deposit rates (185.5 billion) increased by 0.05%

(Update 5) A distortion is being recorded in the banking system and it is affecting the society as well and it must be addressed.
Any distortion requires immediate interventions.
In our view an auction is not a distortion if there is a final judgment and the borrower shows no interest in going ahead with even a preliminary settlement..then an auction should be the alternative when it comes to property or assets…
Auctions are not held in Greece mainly because the banks are pawns in the hands of the current delicate politics…
If large-scale auctions take place in Greece in the middle of the pre-election period, Mitsotakis’ government will suffer political consequences.
The door-smashing model of the Spanish police led to painful political results…
Fear of the political cost presses on the banks… We consider it wrong not to conduct real estate auctions when the borrower exhibits fraudulent behavior and bets on nothing other than his own correct behaviour…
Auctions shall be held…but always as long as there are final judgments and the borrower has shown no interest in protecting his property.

However, there are also parties in real estate… Unfortunately, we refer to the policies pursued by banks which sometimes in collaboration with NPEs management companies… make super profits…

Deposit rates highly skew from 0.05% to 0.10%, loans at 5.5% and bondholders paying interest rates of up to 9.2%

Bank deposits amount to 194.5 billion euros in Greece and 138.83 billion for individuals.
Loans in Greece 142.9 billion and the private sector 113.76 billion.
The private sector means business and households, businesses to 70 billion, households to 38.8 billion, of which 29.7 billion are housing loans …

The average interest rate on deposits is at best between 0.05% and 0.10%, loans 5% and 5.5%, mortgages 3.75%, consumer loans 12% …
Despite the widening gap between interest rates on loans and deposits, there would be no criticism if banks did not pay interest rates to bondholders at 7.5% …
Banks are comfortable because of the oligopolistic situation in which they operate, no matter the capital raised by individuals and corporations passes through the banks and remains a bank deposit…and so they charge low interest rates…because of the ECB rates…which were At 0% for Cairo…
The European Central Bank raised interest rates significantly but did not notice any interference in deposit rates…
It is clear that society cannot demand maximum interest rates on deposits …
But at least the current 0.05% rate could become 0.50% or 1% conditional and if longer terms are adhered to…

The banks went through a 10-year disaster mainly because they had 45-50 billion bonds which were cut off – suffered a devaluation – causing a massive loss of capital on the verge of bankruptcy, the Greek banking system has reached.
NPEs then jumped to 106 billion due to economic downturn to improve to 10 billion in the current period…
Although the banks were destroyed, the Greek banks were helped, as the Financial Stability Fund provided nearly 44.5 billion, Hercules 1 and 2 helped the banks decisively … A number of other interventions through bartering with the public also resulted in significant capital gains .
Greek banks have received a huge boost in recent years…

We citizens must change to be more consistent and prudent in our commitments to the banking system.
But banks must also change and not follow the practices of the past … to get impressions in the quarterly accounting statements …
When they pay 7.5% to bondholders, 9.2% to Tier 2 bondholders…and 0.05% to a depositor, it’s a challenge…
When banks issue second class or second class bonds and pay interest rates from 9.2% to 9.5%…and the depositor is locked into interest rates of 0.05%, it is a big mistake…
This distortion must change and the change here is clear… Deposit rates of Greek banks must be increased….

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