Greek Deal Won't Save the Country's Banks
Greece at Crossroads as Europe Braces For Worst
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Greek banks, which received two capital infusions in the past two years, may need a third one as a recession drives up losses from bad loans.
The four biggest lenders, accounting for 91 percent of the country’s banking assets, could see their 12 billion euros ($14 billion) of tangible core capital wiped out by mounting provisions as overdue and restructured loans default. Even if Greece reaches an agreement with European creditors to free up additional money, its next bailout will need to include a new round of funding for the ailing banks.