Postbank split to be announced on Friday
The Bank of Greece is expected to announce the split of the Postbank in two smaller banks, according to the law regarding the restructuring of credit institutions. The law provides that a “healthy” bank is created, where all deposits and healthy loans and title portfolios are transferred.
The newly-established bank will receive a license of operation by the Bank of Greece and will be supported by the Deposit and Investment Guarantee Fund. The old bank will have its license revoked and be placed under liquidation. Following liquidation of the “old” bank, the demands of the Deposit and Investment Guarantee Fund will supersede those of shareholders.
The “healthy” bank will have to be supported so that its Capital Adequacy Ratio is above the 9% supervision limit and have access to the Eurosystem’s cash flow. The EFSF will provide the necessary capital and be the “healthy” bank’s sole shareholder. The EFSF has already decided upon Postbank president Kleonas Papadopoulos’ replacement, which is current executive vice president Haris Siganos.