Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 3 (2015), No. 3, Pages 89-102

DOI: 10.12735/jfe.v3i3p89

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Stress Testing the Greek Banking System

Kyriaki V. Kosmidou1  Konstantinos A. Moutsianas1 

1Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece


To Cite this Article     Article Views: 749     Downloads: 361  Since deposited on 2015-10-09


The financial stability and smooth function of the financial system constitute issues of high interest, particularly after the outbreak of financial crises. The current crisis generally proved that dysfunctions in the banking system cause systemic risk and turbulence in the economic environment and vice versa; the deterioration of the macroeconomic environment affects financial institutions. Our study has two objectives: the first is to identifying the effects of the macroeconomic environment on the smooth functioning of the Greek banking system and, specifically, to what extent the deterioration of economic conditions affects the credit risk of Greek banks. The second objective is to developing a macro stress-testing framework to assess the stability of the Greek banking system and the credit risk of Greek banks in particular in the context of a hypothetical deterioration of the macroeconomic environment.

JEL Classifications: G01, G17, G20, C15

Keywords: stress testing, credit risk, financial stability

To Cite this Article: Kosmidou, K. V., & Moutsianas, K. A. (2015). Stress testing the Greek banking system. Journal of Finance and Economics, 3(3), 89-102.

Copyright © Kyriaki V. Kosmidou & Konstantinos A. Moutsianas

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This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Stress Testing the Greek Banking System