{"id":7952,"date":"2020-10-21T14:48:07","date_gmt":"2020-10-21T14:48:07","guid":{"rendered":"https:\/\/hfsf.odh.gr\/?page_id=7952"},"modified":"2021-01-03T16:23:03","modified_gmt":"2021-01-03T16:23:03","slug":"banks-asset-quality","status":"publish","type":"page","link":"https:\/\/hfsf.odh.gr\/en\/banks-asset-quality\/","title":{"rendered":"Banks\u2019 Asset Quality"},"content":{"rendered":"\t\t
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Banks' Asset Quality<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\r\n \r\n Hellenic Asset Protection Scheme (\u201cHercules\u201d initiative) <\/span>\r\n <\/h2>\r\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Hellenic Asset Protection Scheme (renamed to \u201cHercules\u201d scheme) is an HFSF strategic initiative, implemented by the Ministry of Finance, designed to assist banks in securitizing non-performing exposures (NPEs) and moving them out of their balance-sheets. The four systemic banks are anticipated to utilize the scheme in order to securitize approximately \u20ac30 billion of NPEs at the fastest possible timeline in order to release their potential for the financing of households and corporations.<\/p>

The immediate reduction of banks\u2019 NPLs -at an affordable cost- coupled by the development of an active NPL market are among the highest priorities of the HFSF\u2019s. In this context, the Fund worked closely with all stakeholders involved in the task of NPL reduction, including Government Authorities, the Bank of Greece, the Single Supervisory Mechanism (SSM), Supranational Organizations, Investors, international banks and advisors, and the Greek systemic banks, in order to address the need for a systemic structural solution to address the reduction of NPLs.<\/p>

Under the scheme, an individually managed, private securitization vehicle will buy NPEs from the bank and dispose notes to investors. The State will provide a guarantee for the senior, less risky notes of the securitization vehicle. In exchange for such guarantee, the State will receive a commission at market terms. In November 2018, the HFSF sent an all-encompassing study to the Ministry of Finance for the development of the Hellenic Asset Protection Scheme. Throughout 2019, the HFSF continued working closely with the banks and other stakeholders on the H-APS initiative, also participating in the legal team responsible for the drafting of the relative Law. The Law was eventually approved by the Greek Parliament in December 2019.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\r\n \r\n NPE management <\/span>\r\n <\/h3>\r\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In addition to the H-APS strategic initiative, the HFSF works closely with the banks and the authorities in order to facilitate the management of NPEs, whereas as per the provisions of the RFA, the HFSF provides its consent for the approval of the banks\u2019 NPE Strategies and Operational Targets submitted to the SSM.<\/p>

Having developed a robust NPL data management and reporting tool to analyze and benchmark banks\u2019 performance on the NPE reduction front, the HFSF holds regular meetings with the banks to discuss latest developments and identify as early as possible reasons for potential deviation versus approved NPE Operational Targets, recommend mitigating actions and potential constraints. The latter has been a long-lasting focus of the Fund that has developed and updated twice an \u201cAnalysis of non-regulatory constraints and impediments for the development of an “NPL market in Greece”<\/a><\/strong>,<\/strong> as well as providing its comments and proposals for the new Insolvency Law.<\/p>

Open and frequent communication with the banks is of paramount importance and is also taking place through the Hellenic Banks Association, where the Fund participates as an observer in the NPL Coordination Committee and the Fund\u2019s participation in other interbank-initiatives such as the NPL Forum, established following HFSF\u2019s relative proposal through its work on an \u201cNPL resolution action plan to enhance coordination among banks and accelerate the restructuring of the Large Corporate NPLs\u201d.<\/p>

The Fund\u2019s dedicated division, aim to act as a center of excellence, research, develop and promote international best practices and provide guidelines to ensure uniformity of solutions, acceleration of process and sharing of know-how in specific focus areas of NPE management in cooperation with domestic and international associations and with the assistance of external experts (as needed).<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Banks’ Asset Quality Hellenic Asset Protection Scheme (\u201cHercules\u201d initiative) The Hellenic Asset Protection Scheme (renamed to \u201cHercules\u201d scheme) is an HFSF strategic initiative, implemented by the Ministry of Finance, designed to assist banks in securitizing non-performing exposures (NPEs) and moving them out of their balance-sheets. The four systemic banks are anticipated to utilize the scheme […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"yoast_head":"\nBanks\u2019 Asset Quality - Hellenic Financial Stability Fund<\/title>\n<meta name=\"description\" content=\"The Hellenic Asset Protection Scheme (renamed to \u201cHercules\u201d scheme) is an HFSF strategic initiative, implemented by the Ministry of Finance, designed to assist banks in securitizing non-performing exposures (NPEs) and moving them out of their balance-sheets.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks\u2019 Asset Quality - Hellenic Financial Stability Fund\" \/>\n<meta property=\"og:description\" content=\"The Hellenic Asset Protection Scheme (renamed to \u201cHercules\u201d scheme) is an HFSF strategic initiative, implemented by the Ministry of Finance, designed to assist banks in securitizing non-performing exposures (NPEs) and moving them out of their balance-sheets.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/hfsf.odh.gr\/en\/banks-asset-quality\/\" \/>\n<meta property=\"og:site_name\" content=\"Hellenic Financial Stability Fund\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-03T16:23:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/hfsf.odh.gr\/wp-content\/uploads\/2020\/11\/banks-asset-quality.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"668\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"2 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/hfsf.odh.gr\/#website\",\"url\":\"https:\/\/hfsf.odh.gr\/\",\"name\":\"Hellenic Financial Stability Fund\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/hfsf.odh.gr\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/hfsf.odh.gr\/en\/banks-asset-quality\/#webpage\",\"url\":\"https:\/\/hfsf.odh.gr\/en\/banks-asset-quality\/\",\"name\":\"Banks\\u2019 Asset Quality - Hellenic Financial Stability Fund\",\"isPartOf\":{\"@id\":\"https:\/\/hfsf.odh.gr\/#website\"},\"datePublished\":\"2020-10-21T14:48:07+00:00\",\"dateModified\":\"2021-01-03T16:23:03+00:00\",\"description\":\"The Hellenic Asset Protection Scheme (renamed to \\u201cHercules\\u201d scheme) is an HFSF strategic initiative, implemented by the Ministry of Finance, designed to assist banks in securitizing non-performing exposures (NPEs) and moving them out of their balance-sheets.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/hfsf.odh.gr\/en\/banks-asset-quality\/\"]}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/pages\/7952"}],"collection":[{"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/comments?post=7952"}],"version-history":[{"count":27,"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/pages\/7952\/revisions"}],"predecessor-version":[{"id":11847,"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/pages\/7952\/revisions\/11847"}],"wp:attachment":[{"href":"https:\/\/hfsf.odh.gr\/en\/wp-json\/wp\/v2\/media?parent=7952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}