Bank Of Greece Research Articles

Persistent trends and inefficiencies in the Greek housing market: a sentiment based approach

PurposeWe examine the aggregate price trend of the Greek housing market from a behavioral perspective.Design/methodology/approachWe construct a behavioral real estate sentiment index, based on relevant real estate search terms from Google Trends and websites, and examine its association with real estate price distributions and trends. By employing EGARCH(1,1) on the New Apartments Index data from the Bank of Greece, we capture real estate price volatility and asymmetric effects resulting from changes in the real estate search index. Enhancing robustness, macroeconomic variables are added to the mean equation. Additionally, a run test assesses the efficiency of the Greek housing market.FindingsThe results show a significant relationship between the Greek housing market and our real estate sentiment index; an increase (decrease) in search activity, indicating a growing interest in the real estate market, is strongly linked to potential increases (decreases) in real estate prices. These results remain robust across various estimation procedures and control variables. These findings underscore the influential role of real estate sentiment on the Greek housing market and highlight the importance of considering behavioral factors when analyzing and predicting trends in the housing market.Originality/valueTo investigate the behavioral effect on the Greek housing market, we construct our behavioral pattern indexes using Google search-based sentiment data from Google Trends. Additionally, we incorporate the Google Trend index as an explanatory variable in the EGARCH mean equation to evaluate the influence of online search behavior on the dynamics and prices of the Greek housing market.

Perspectives for the Use of Umbilical Cord Blood in Transplantation and Beyond: Initiatives for an Advanced and Sustainable Public Banking Program in Greece.

The umbilical cord blood (UCB) donated in public UCB banks is a source of hematopoietic stem cells (HSC) alternative to bone marrow for allogeneic HSC transplantation (HSCT). However, the high rejection rate of the donated units due to the strict acceptance criteria and the wide application of the haploidentical HSCT have resulted in significant limitation of the use of UCB and difficulties in the economic sustainability of the public UCB banks. There is an ongoing effort within the UCB community to optimize the use of UCB in the field of HSCT and a parallel interest in exploring the use of UCB for applications beyond HSCT i.e., in the fields of cell therapy, regenerative medicine and specialized transfusion medicine. In this report, we describe the mode of operation of the three public UCB banks in Greece as an example of an orchestrated effort to develop a viable UCB banking system by (a) prioritizing the enrichment of the national inventory by high-quality UCB units from populations with rare human leukocyte antigens (HLA), and (b) deploying novel sustainable applications of UCB beyond HSCT, through national and international collaborations. The Greek paradigm of the public UCB network may become an example for countries, particularly with high HLA heterogeneity, with public UCB banks facing sustainability difficulties and adds value to the international efforts aiming to sustainably expand the public UCB banking system.

“Pseudo-Contracted” Workers as a Means of Bypassing Labour Law in Greece

The aim of this article is to investigate two external flexible forms of employment—the leasing of workers through Temporary Work Agencies (TWAs) and the contracted workers employed through Business Service Providers (contractors). Undoubtedly, these two forms of employment are complex and often give rise to confusion. First, this article reviews the characteristics of these types of workers and the operation of these businesses. Second, it presents the results of a mixed method of empirical research (quantitative and qualitative) regarding contracted workers. Our sample was 365 contracted workers from the cities of Athens, Thessaloniki and Patras, Greece. In particular, quantitative research is conducted using a methodology called RDS (Respondent Driven Sampling) that is innovative in the field of labour economics and labour relations. Some significant findings of our qualitative research are used to improve, extend, and interpret the quantitative results. Our research proves that contracted workers, who are employed at the premises of the banks, are leased workers, and the contracting undertakings usually operate unlawfully as TWAs. Our research proves that Banks in Greece are using “pseudo-contracting” to circumvent the European Directive 2008/104/EC and the Greek Laws 4052/2012 and 4254/2014, both of which provide institutional protection to workers leased through TWAs. In more detail, the relevant European Directive and the Greek Law 4052/2012 provide salary equality and equal labour rights for the leased workers in Greece and the EU, when they share the same qualifications as the permanent employees of the user undertakings. The employers’ aim in adopting this policy is mainly to pay lower salaries to contracted workers, who in practice have the characteristics of leased workers.

Managerial Styles and Employee Productivity. An Empirical Study From Bank Sector Employees in Greece

The aim of the paper was to assess the level to which managerial styles in an organization affect employee performance among selected banks in Greece. The study focused on three major managerial styles which include; democratic, autocratic and participatory styles of management. The study utilized a descriptive research design and an online survey was used to collect relevant data from different employees attached to selected banks in Greece (National Bank of Greece, Piraeus Bank, Citibank Greece, and HSBC Greece). The survey targeted 220 employees though only a response rate of 87.3% was obtained based on 200 employees that answered questions contained in the survey questionnaire. The different study findings showed that all the managerial styles are positively associated with employee performance except autocratic managerial style which had a positive but insignificant relationship with employee performance. The study concluded that it is very important for managers to continuously apply different innovative managerial styles in executing their duties since this has a great impact on the general performance of employees.

E-LEARNING IN THE BANKING SECTORCASE STUDY OF THE NATIONAL BANK OF GREECE

This research deals with the issue of distance education in the human resources of banks and specifically of the National Bank of Greece. The purpose of the research was to investigate how distance education affects the human resources of banks in developing their management skills. The research methodology followed was quantitative, while the research tool used was the online questionnaire. The survey sample consisted of 82 people working in the banking sector and their selection was made according to convenient sampling.The results showed that distance education works beneficially for the in-house training of employees in the banking sector. In particular, e-learning programs have been found to contribute to the development of knowledge, work productivity, the acquisition of new skills and the enrichment of existing skills held by employees in the banking sector. It was also clear that the impact of distance education on improving employees skills was multifaceted. Participants were positive about the experience they gained from distance learning programs and want to increase as they state that their benefits vary.The present research is one of the first attempts that aim to record the aspects of e-learning implementation in the banking sector.

Leveraging CSR for Sustainability: Assessing Performance Implications of Sustainability Reporting in a National Business System

In the light of Agenda 2030 awareness of sustainability is steadily growing all over the world. Devastating phenomena like pandemics (Sustainable Development Goal 3 (SDGs—Agenda 2030)), poverty (Sustainable Development Goal 1 (SDGs—Agenda 2030)) as well as climate change (Sustainable Development Goal 13 (SDGs—Agenda 2030)) threaten humanity, calling for more sustainable solutions. Although economic growth (Sustainable Development Goal 8 (SDGs—Agenda 2030)) is one of the principal goals for a sustainable future, little research has been devoted to the interface of corporate social responsibility (CSR) and sustainability and their contribution to the financial sector, in view of sustainable banking. Even fewer are the studies concerning sustainable banking in Greece. This paper attempts a comparative overview of sustainability integration into businesses, focusing on the banking industry. The current theoretical analysis initially provides an extended review of the CSR and sustainability concepts, which is followed by a comprehensive analysis of non-financial disclosures (NFDs) and their business value, providing some evidence from Greece. The following sections refer to the performance implications and sustainability integration in the banking industry. Eventually, sustainable banking seems to enhance banking performance in a national business system. This is a very important deduction for sustainability to be both the cause and effect of corporate banking. Along with the discussion, some avenues for future research are highlighted.

Dimensions of Mobile-banking in Greece During Covid-19

The Covid-19 pandemic reveal the need for structural reforms in various economic sectors including the banking sector. In Greece the banking sector needs to promote structural reforms promoting new products and services or improve existing ones to improve contactless transactions. The purpose of the paper is to explore the determinants (in terms of demographic, personal and behavioral factors) that are affecting the use of mobile banking during the Covid-19 pandemic in Greece. A multiple logistic regression and a structural equation model analysis are employed, in conjunction with confirmatory factor analysis, based on a proposed extended technological acceptance model (TAM). The data derived from a field survey on 617 users and non-users of mobile banking, using an appropriately-constructed questionnaire. The results showed that the demographics as well as the personal and technology acceptance factors contributed significantly to the adoption of this form of online banking in Greece. From the extended TAM model, perceived usefulness, perceived ease of use, perceived risk, hedonic motivation and social influence were found to have a significant impact on the use of mobile banking. Furthermore, perceived awareness combined with subconscious factors such as personal characteristics of Greek consumers play an important role. This is the first study for Greece, to the best of our knowledge, which examines the determinants affecting the use of mobile banking both in terms of consumers' perceptions and attitudes during a period where contactless transactions became necessary in the everyday life of consumers worldwide.

Cooperative Banks in Greece and Small & Medium Enterprises Views at a Time of Credit Constraints

Cooperative banks are among those credit institutions that have played an important role in the financial systems of many countries, usually operating supplementary to the traditional commercial banks, mainly at regional level and aiming mostly at supporting SMEs financial needs. They provide traditional banking products to local SMEs even in remote areas. The number of Cooperative Banks in Greece has been decreased from originally 16 banks to 6 in the second half of 2020. The scope of this paper is to examine the managers’ views of 158 SMEs towards Cooperative Banks’ support (banking facilities) over the economic and financial crisis period (2015-2019). The research was carried out the last three months of 2019, using constructed questionnaire to a random sample of 208 Cooperative Banks’ clientele in places where Cooperative Banks have branches. Research showed that SMEs have a quite good opinion for Cooperative Banks presence in Greece.

Non-performing loans in the hotel industry: The case of Greece

Throughout the Greek economic crisis, the problem of rising stock of non-performing loans (NPLs)[1] gradually evolved into one of the most challenging structural deficiencies faced by the Greek banking sector. Despite outstanding performance of the Greek tourism sector, which over the last five years attracted record number of tourists each year, NPLs in the hotel sector remain widespread. The objective of this study is to identify macroeconomic factors and sector-specific characteristics, which led to NPL stock piling in Greek tourism sector. Our findings are supported by rare dataset on NPLs in Greek hospitality sector compiled from publicly available sources. We apply descriptive quantitative analysis to the data from the Bank of Greece, the Hellenic Statistical Authority and other official sources. We found that, despite the record performance of the Greek tourism sector, hotel loans are as problematic as loans issued to other sectors of the Greek economy. Our findings contribute to the NPL literature by providing valuable insights for the Greek hotel industry’s NPL stock, especially in view of the fact that such academic research has not been conducted before.
 
 [1]The term ‘NPLs’ is used as a shorthand term to denote all Non-Performing Exposures (NPEs) (ECB, 2017).When a customer delays payment of a loan that is subject to a specific contract with a bank for more than a predetermined number of days then this is considered NPL. Depending on the country, bank, and applicable provisions, the number of days may refer to more than 30, 60 or 90 days (IMF, 2011). The European Supervisory Authorities consider a loan as non-performing when the borrower has been late for more than 90 days to pay the agreed installments to the financial institution that has contracted the contract. According to the European Central Bank (2016), loans repaid by the borrower within the agreed term are considered to be "serviced". Due to the fact that the definition of NPLs is based on a variety of different interpretations, the European Banking Authority attempted to give a single definition through the term ‘NPEs’. NPEs include not only loans but all debt instruments (loans, advances and debt securities) as well as off-balance sheet exposures. NPEs include either of the two criteria:
 - Long-term openings that have exceeded the 90-day limit,
 - "Uncertainty collection" exposures qualifying as non-serving, although they are either current or have a delay of less than 90 days.

Investigation of the fractal footprint in selected EURIBOR panel banks

EURIBOR emerged as a conventional proxy for a risk-free rate for a reasonably long period of time after the creation of the Eurozone. However, the joy was short-lived, as the global credit crisis shook the markets in mid-2008. Significant counterparty risk embedded in a derivative transaction cannot be left out. EURIBOR reflects the credit spread on borrowing. Hence, risk and uncertainty are inextricably linked here. This study investigates five banks out of 19 panel banks that manage EURIBOR in various Eurozone countries. These banks, HSBC, ING, Deutsche Bank, the National Bank of Greece and Barclays, are tested from January 2009 to December 2017 on a daily basis. Bank specific EURIBOR can be predicted in all five cases with different degrees. The trace of a profound herd is observed in the case of the National Bank of Greece, others were relatively mild in nature. The customer base and their risk grade were recognized as the main factor. Their information asymmetry and derived information entropy suggest embedded chaos and uncertainty.

Bank oligopoly competition analysis using a differential equations model

The purpose of this paper is to propose a model of differential equations that will be able to be applied in a bank oligopoly competition case. The differential equations model will be based on Lanchester's combat model, a well-known mathematical theory of war. Due to the fact that an oligopoly of four banks will be examined, the proposed model will consist of a 4x4 differential equations system. Many researchers have already concluded that mathematical theories of war models can be successfully applied to business cases as there are many similarities between the battle fields and the business competition. Since the proposed model's predictions concern the deposits evolution, this model can contribute in the analysis of the competition between the four major banks in Greece. The statistical analyses carried out confirm the model's good fit.

Bank oligopoly competition analysis using a differential equations model

The purpose of this paper is to propose a model of differential equations that will be able to be applied in a bank oligopoly competition case. The differential equations model will be based on Lanchester's combat model, a well-known mathematical theory of war. Due to the fact that an oligopoly of four banks will be examined, the proposed model will consist of a 4x4 differential equations system. Many researchers have already concluded that mathematical theories of war models can be successfully applied to business cases as there are many similarities between the battle fields and the business competition. Since the proposed model's predictions concern the deposits evolution, this model can contribute in the analysis of the competition between the four major banks in Greece. The statistical analyses carried out confirm the model's good fit.

An Application of CAMELS and Z-Score Methodologies in a Comparative Analysis Between the Four Systemic Banks in Greece for the Period 2006-2016

Τhe recent crisis which accelerated after the collapse of Lehman Brothers in 2008 revealed that relationships between the real economy and the financial sector are decisive for the stability of the world economy, even in in cases of well operating banking systems operating in competitive economies. In the present article, the authors focus on Greece, the weakest member of the Eurozone, but with a financial system which seemed to operate on a sound basis, avoiding initially the effects of the US financial crisis. The goal of this article is to examine the performance of the Greek banking sector for the critical decade before and after the crisis, assessing the financial position of the four systemic Greek banks for the period 2006-2016. For this purpose, two alternative methods, CAMELS and Z-scores, are applied, comparing the results obtained from the two methodologies. As expected, the results of both methodologies show that the failure risk during the crisis period 2011-2016 for the four systemic banks was significantly higher compared to the pre-crisis period 2006-2010.

Greek banking sector in the economic crisis and M&As as a solution

This study examines the impact of thirteen mergers and acquisitions in the Greek banking sector which took place during the period of economic crisis: 2008-2014. More specifically, the sample of this study consists of all the mergers and acquisitions that led to the four remaining Greek banks (the acquirers of the above-mentioned transactions) which are: National Bank of Greece, Piraeus Bank, Eurobank and Alpha Bank. These specific banks were chosen due to the fact that after the M&As transactions we were able to compare their financial data. This comparison was made by using eight ratios for statistical tests one-year pre- and post-merger. The results of the study indicate statistically significant improvement in three capital structure and viability ratios, as well as a slight improvement on a liquidity ratio, while there is statistically insignificant change or no improvement on the profitability and efficiency ratios. In conclusion, there was some improvement in terms of capital adequacy and loan structure as far as the total capital employed of the merged institutions is concerned, but without improving the profitability of the banks during the economic crisis in Greece.

Electronic Banking in Greece. The case of Chalkida

In this paper, we investigate the level of penetration of electronic banking in a provincial city of Greece, Halkida. We use descriptive and inferential statistics (Pearson Chi-Square test, crosstabulation or contingency table) in order to identify the percentage of electronic banking adoption. A random sample of 100 adults were asked to fill in a questionnaire, based on previous investigations concerning internet and electronic banking (e.g. Munusamy et al., 2012, Chau & Ngai 2010, Durkin 2004, modified to the specific circumstances. We used the SPSS 22 (Statistical Package for Social Sciences). The results of studies show that customers under certain conditions are receptive to the adoption of electronic banking. Gender, education and the purchase of products through the Internet, affect the usage of electronic banking. Level of education and safety are the factors influencing the intention to use electronic banking. Finally, characteristics such as cost, support/service, computer knowledge and effort made, have significant impact on perceived performance regarding the usage of online banking. The findings of this paper have practical implications for the banking industry in order to understand their own customers better and improve their services.

Corporate Social Responsibility and Culture: The case of the largest Greek Commercial Bank.

Throughout the years, the banking sector has encountered many challenges and undergone numerous changes in an effort of keeping up with international expectations, regulatory initiatives and competitive pressures. On the one hand, banks have been diversifying their activities in pursuit of customising their services to industries’ needs to increase their risk resilience and secure their marginal returns. On the other hand, they have been engaging in investments within the wider field of Corporate Social Responsibility (CSR). The underlying value proposition of this mandate rests upon facilitating and further strengthening mutually beneficial relationships with the society while recognising the delicate balance and preservation of the natural environment. In this direction, many banks in the last decades tried to ensure their image through investments in the field of culture. The present research explicates the manifestation and operationalisation of CSR through investment realised for cultural objectives as part of the social aspect business responsibility. As such, we shift attention towards practices applied worldwide by the banking sector with respect to museums. Furthermore, we abide by a single case study approach and investigate the business model of the Cultural Foundation of Piraeus Bank (CFPB) as a CSR practice. Piraeus Bank is the largest commercial bank in Greece and CFPB constitutes a unique paradigm worldwide, since the bank not only contributes to the establishment of the museum in line with the majority of other banking initiatives that witness support through sponsorships but it is also actively engaged in its ongoing operations. The network of CFPB includes currently nine thematic museums in several locations throughout Greece. In light of these, we present how CFPB aligns and realises its activities in terms of financing, relationships between its network of museum with local communities as well as the promotional strategies deployed. Finally, we also discuss on potential future research avenues and implication derived for both academia and practice.

Cross‐Border Residential Lending: Theory and Evidence from the European Sovereign Debt Crisis

AbstractWe examine bank strategies to rebalance residential mortgage portfolios toward other geographical regions in the context of the European sovereign debt crisis. For banks in Greece, Ireland, Cyprus, Italy, Portugal and Spain (GICIPS), we find evidence of flight‐to‐quality if banks were undercapitalized and had high funding cost, and evidence of risky‐lending if banks were undercapitalized but without funding problems. For banks in core safe European countries, we find evidence of flight‐to‐quality among banks with high capital ratios, and risky‐lending among banks with low funding cost. We rationalize these empirical results with a general equilibrium model of cross‐border mortgage lending.

Local Resource Based Community Care Development as Asset for the Silver Economy of the Region

Introduction : The national and local authorities are hesitant in moving forward with care reforms as those demand serious investment from state resources. None of the care reform proposals actually proposes how to generate income to build community based system. In this research we are proposing a community based integrated care model that is established on local resources lateral to the care services such as senior tourism. Local Resource Based Community Care Development can function as a strong motivation for the authorities to reform care to integrate services and professionals. Methods : 1. Extraction of epidemiological data and Risk Factors Assessment 2. VES -13 self-administered CGA questionnaire to measure i-ADL of the >65y.o. cohort. GIS mapping of population in a scale of primary and secondary prevention and care needs embedded in a care monitoring E-Health platform 3. Regression analysis of care means to the needs per CGA risk factor. Desk research analysis of the region 4. Alignment of the local Health and Care services and professionals of the area ; drawing the vision and strategy 5. Focus Groups and structured interviews to establish an MoU to create the Care Hub managed by PPP 6. Setting the Investment Facility between the Municipal Authorities, a Bank in Greece and the public and private providers ;elaborating the Business Plan 7. Investment blending at different stages of the Care Hub deployment until stabilization of the RoI and the cashable savings Results : 1. Needs analysis for care service and HR for the local population delivered; primary and social care services aligned. Telemedicine for acute care and 2nd opinion deemed possible. 2. Care Hub structure and business plan delivered 3. Senior Tourism and Health Tourism model designed and delivered 4. Investment blending, investment familiarization tour to health resorts organized Key Conclusions : 1) In order to kick off integrated care reform in a locality it is necessary to provide the means that will cover the reform cost and assure sustainability of operations in the long run. 2) For that it is necessary to apply a PPP structure to manage a Care Hub that will centralize organization, coordination and management of all Long Term Care services. 3) This structure does not depend on health or social policy central authorities;it is run locally by a new Care institution 4) Investment and innovative financing and business innovation is necessary for any community care structure. 5) Local Resource Based, Community Based Care can assure LTC sustainable care operations in the long run 6) the first priorities to implement integrated care by order of priority are: a. leadership awareness and on the job training b. Deliberation of the integrated care plan with the local health ecosystem stakeholders c. build the right investment blend until the Care Hub is sustainably run with constant RoI d. the Care Hub has to be independent from central authorities, to local control for commissioning e. Workforce training and patient empowerment are the next step to engage to.

The Correlation of Non-Performing Loans Between the Four Greek Systemic Banks Before and During the Recent Crisis Based on Accounting Information

In the last years, and especially during the recent financial crisis there is an ongoing debate about non-perorming loans (NPLs) as they have increased enormously, even in developed countries. This phenomenon has deteriorated the overall status of banks, especially in countries that affected more by the crisis, as the loan portfolio constitutes a very important part of banks' total assets. This situation has increased uncertainty towards the global banking system resulting to run on banks with negative effects on the liquidation of the financial system and therefore to the finaning of the real economy. The aim of this article is to examine the level of correlation of NPLs among the four systemic banks in Greece. The empirical results show that the level of NPLs of the examined banks is affected by the performance of the bank itself in previous periods, as well as the performance of the other three banks for the same periods. Furthermore, the impulse response of a positive shock on the level of NPLs of each bank proves the existance of correlation between the four banks.

The Regulation of Crowdinvesting Under the Greek Securities Laws

Due to the ongoing financial crisis in Greece, which has vastly affected the Greek banking system and consequently the financing opportunities of domestic entrepreneurs and companies, the Greek legislator, in close cooperation with other public entities, namely the Hellenic Capital Markets Committee (“HCMC”) and the Bank of Greece, has strived to find alternative financing solutions which would serve both as a “lifejacket” and mainly as an impetus for Greek entrepreneurship. Following a suggestion from the HCMC and after a public consultation, which took place with production and social institutions, the Greek Parliament voted for the 4416/2016 law on September 1st 2016 which was entered into force a week later. This legislation mainly focused on incorporating the EU Directive 2014/91, since 17 out of 29 articles amend the Greek law 4099/2012 which incorporated the previous EU Directive 2009/65. Apart from these provisions, however, this law also includes two more articles (article 23 and article 24) which amended 3401/2005 (“The Greek Prospectus Act”) and 3606/2007 (“Markets in Financial Instruments Act”) legislations respectively. These two articles are in fact the cornerstone of the Greek crowdinvesting regulation. This Article examines the regulatory framework of crowdfunding in Greece, especially after the adoption of the aforementioned specific provisions regarding the public offer of securities through crowdfunding platforms. More specifically, it aims to provide a general description of the newly adopted crowdfunding regulation and to investigate its probable effect to the boost of the inexistent crowdinvesting market in Greece. Moreover, in the context of legal analysis of the new regulation, some inconsistencies which might lead to opposite results than the desired ones are pointed out and some modifications which are deemed necessary in order for the crowdfunding market in Greece to become a valuable tool for growth and not turn into a “market for lemons” are suggested. The legal analysis follows a comparative approach since it takes into consideration similar provisions and practices in other EU countries and the USA.