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Title: The impact of the EMU on the profitability and efficiency of the greek banking sector
Keywords: Νομισματική πολιτική -- Έρευνα -- Ελλάδα -- 1998-2003
Monetary policy -- Research -- Greece -- 1998-2003
Επιτόκια -- Έρευνα -- Ελλάδα -- 1998-2003
Interest rates -- Research -- Greece -- 1998-2003
Issue Date: 2007
Publisher: ΤΕΙ Ηπείρου. Σχολή Διοίκησης και Οικονομίας
Abstract: When Greece joined the EMU, on 1/1/2001 , the domestic monetary policy of high real interest rates that had been applied for more than a decade ended, resulting in an abrupt decline of the entire interest rate structure. This paper examines the effects of the adoption of the Euro and the subsequent interest rate conνergence οn the Greek Banking sector, and more specifically οn the profitability, the earnings structure and the operating efficiency of the Greek banks. Using published annual balance sheet data from 1999 to 2003, as well as aνerage interetrate data published by the Central Bank, we demonstrate by simple statistical analysis that after just one year of reduced profitability, the Greek banking sector adapted successfully to the new enνironment and fully restored its profitability by increasing net interest income and replacing other traditional, drastically reduced sources of income. The growth in profitability is explained mainly by the expansion of consumer lending, an area under exploited prior to the Euro. Greek interest rate spreads are then compared to European aνerages and further analysis of other efficiency measures shows that certain operational inefficiencies still pe
ISSN: 1109-2629
Appears in Collections:Επιθεώρηση Οικονομικών Επιστημών

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