Denver, CO – (Stocksntrade) – 05/17/2014 – The Athens based lender, National Bank of Greece (ADR) (NYSE:NBG), contemplates on selling a stake in Istanbul-based Finansback AS, Turley’s seventh largest bank by market value. The demand for Turkish bank assets rises, as a result of the National bank retaliated by planning to shed the stake. In fact, Greek lender acquired Finansbank in 2006.
Submit the plan
The bank anticipates submitting a streamlining plan in the second half of this year. The method comprises of the sale of “significant” minority hold in the Istanbul-based bank, said the Greece-based leading lender.
NBG shores up capital
Overseas lenders are “snapping up” the banking assets of Turkey wing to the impact of a corruption probe last December. Reportedly, National Bank Of Greece (ADR) (NYSE:NBG) is shoring up capital by accumulating funds after six years of tremendous recession left the banks in Greece with bad loans.
Central bank rebuffed NBG’s plan
On March 7, 2014, NBG said that it would put forward a plan in order to tackle a capital deficit without lifting new equity. However, the regulator of the financial system, The Bank of Greece, spurned NBG’s plan, much to the shock of the Greece lender, reported people close to the commercial lender. It was evident that Bank of Greece was not content with the “constructive” plan of NBG to address capital shortage.
The bank’s shareholder
On May 9, 2014, the shareholders of the Greek lender approved a plan to gather $3.4 billion (2.5 billion euros) via the sale of new shares rated 2.2 euros per piece. The hike on funds came after the central bank of Greece informed NBG that it required to raise the amount subsequent to a review of its “stress test” and “loan portfolio” hosted by BlackRock Inc. The Istanbul-based Finansbank contributed $531 million to the Greek lender’s last year’s profit.
National Bank Of Greece (ADR) (NYSE:NBG) is yet to encounter another stress test in this October, from the European Central Bank, which could recognize further capital requirements.