Other Bank of Greece Governor's Acts

This section presents other matters relating to the operation of credit institutions. Specifically:
 
1) Criteria and procedure of review by the Bank of Greece of credit institutions' requests for the establishment of new branches in Greece or abroad.

2) Acquisition by credit institutions of "qualifying holdings" in the capital of financial corporations.
These matters are addressed by Bank of Greece Governor's Acts: 2604/4.2.2008 and 2603/4.2.2008 

Bank of Greece Governor's Act 2604/4 February 2008: "Acquisition by credit institutions of "qualifying holdings" in the capital of financial corporations"

Bank of Greece Governor's Act 2604/4 February 2008 codified and amended the provisions of an existing relevant decision of the Bank of Greece (BCC decision 80/15/29 August 2000, as currently in force), requiring prior approval by the Bank of Greece of a bank's acquisition of a "qualifying holding" (over 10%) in the capital of a financial corporation.

The new Governor's Act simplified the Bank of Greece's review process for such requests by laying down minimum criteria for inclusion in an automated approval process, with a view to ensuring the required supervisory review and reducing administrative costs. These criteria mainly concern the level of the capital adequacy ratio, as assessed on the basis of quantitative and qualitative criteria, in relation to any type of risk assumed by credit institutions (Bank of Greece Governor's Act 2595/20 August 2007, Pillar II).


Bank of Greece Governor's Act 2603/4 February 2008: " Bank of Greece's criteria and review process of credit institutions' requests for the establishment of new branches in Greece or abroad"

Bank of Greece Governor's Act 2603/4 February 2008 codified and amended the provisions of an existing relevant decision of the Bank of Greece (Monetary and Credit Committee decision 505/8/23 July 1992, as currently in force), whereby its prior approval is required for the expansion of banks' networks.

This Act simplified the Bank of Greece's review process for such requests by laying down minimum criteria for inclusion in an automated approval process, with a view to ensuring the required supervisory review and reducing administrative costs. These criteria mainly concern:

• the level of the capital adequacy ratio, as assessed on the basis of quantitative and qualitative criteria, in relation to any type of risk assumed by credit institutions (Bank of Greece Governor's Act 2595/20 August 2007, Pillar II); and
• the NPL ratio, taking into account the target set by the Bank of Greece for the overall loan portfolio of each bank.