Credit Institutions' Institutional Framework

This section presents detailed information on the institutional framework governing the establishment and operation of credit institutions.

Law 3601/2007, (as modified by laws 3693/2008, 3746/2009, 3862/2010 and 4002/2011) which transposed Directives 2006/48/EC and 2006/49/EC, replaced law 2076/1992 (except certain provisions of it) and supplemented previously applicable provisions of banking legislation (Laws 5076/1993, 1665/1951 etc.) relating to the establishment and operation, as well as the supervisory status of credit institutions. Specifically, this law:

a) streamlines the provisions on credit institutions' capital increases, enabling them to cover such increases also by contributions in kind;

b) determines that the interest rate level and the overall accrual of interest on credits of all supervised financial institutions will be governed by the legislation applicable to credit institutions;

c) decreases the minimum share holdings requirement in order for the Bank of Greece to be able to request a credit institution to provide information, with a view to enhancing transparency and enabling the examination of shareholders' eligibility;

d) reinforces the role of the authority that supervises banking groups on a consolidated basis, especially in times of crisis;

e) allows the disclosure of decisions of the Bank of Greece imposing penalties, subject to certain conditions;
 
f)  illustrates the criteria taken into consideration by the Bank of Greece in imposing penalties on supervised entities;

g) establishes immunities for both itself as supervisory authority and its statutory bodies, in accordance with the core principles of the Basel Committee; and

h) provides that the audit costs incurred by the Bank of Greece may be reimbursed by supervised institutions.