Second, banks also face the consequences of the increased difficulty that households and businesses have in servicing their debt obligations on account of the protracted recession. These developments imply that it is imperative for banks to strengthen their capital base – a process which is already under way.
Anticipating these challenges, early in 2011 the Bank of Greece, in cooperation with the International Monetary Fund, the European Commission and the European Central Bank, began planning a number of measures to safeguard financial stability.