Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2017

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The new dual role of Greek banks’ branch networks: NPLs and personal banking. Scenario analysis for the branch network of National Bank of Greece.
Georgios Ntinos, Evangelos Manouvelos

##manager.scheduler.building##: Titania
##manager.scheduler.room##: Platon
Date: 2017-04-22 04:15 PM – 06:00 PM
Last modified: 2017-04-11


This study examines how the economic crisis affected the functioning of the Greek banks’ branch networks. We investigate how the traditional branch role is developing and what are the components of the new dual role of the branch network. How can they succeed on one hand to manage “red” loans and alter the composition of the loan portfolio, and on the other hand to maintain and expand their deposit base?

We consider the effect of capital controls and the management of Non Performing Loans (NPL) in the new role configuration. Which are the new employees’ roles in the branch network and how did the voluntary separation schemes worked? Is the relationship between the branch network and the e-banking services competitive or complementary? Both the evolution of personal banking and the deepening of the relationship with the cooperative borrower are reviewed.In particular, we analyze the case of National Bank of Greece. The following five scenarios for its branch network are examined:•         Aggressive downsizing of the branch network and further strengthening of e-banking services. Simultaneous aggressive sale of NPLs, exceeding the time – bound reduction of NPLs and the commitments agreed by the Bank and the Single Supervisory Mechanism (SSM) on NPL reduction targets.•         Branch network reform with emphasis on personal banking. Conservative NPL sale of loan portfolios meeting reduction targets.•         Branch network reform with emphasis on NPL management.•         Network reformation in order to fulfill the dual role.•         Status quo maintainance.

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