Greek Banks Boost Lending Capacity with €10 bn in Performing‑Loan Securitizations

breaking: Greek Banks Accelerate Lending Through Synthetic Securitizations of Performing Loans

Three of Greece’s four systemic lenders are accelerating the use of synthetic securitizations to free up capital for new lending, signaling a strategic pivot to finance growth without swelling risk-weighted assets.

In this form of securitization, performing loans are packaged and funded through credit-enhancing instruments, strengthening banks’ liquidity without transferring nonperforming assets onto investors.The approach stands in contrast to traditional securitization, which mainly targets troubled loans to repair balance sheets.

The move is led by Alpha Bank, Eurobank, and Piraeus Bank, while the National Bank of Greece has held back, citing sufficient capital to back new lending without the need for securitization.

Eurobank has securitized more than €7 billion of performing loans since 2021, trimming its risk-weighted assets by over €2.5 billion.The release of RWAs occurs progressively as bonds reach maturity in these securitization structures.

Piraeus Bank has securitized €8.6 billion,with RWAs released totaling about €2.3 billion after maturities. Alpha Bank’s securitized book stands at €3.8 billion,yielding roughly €1.8 billion in rwas freed up over time.

By converting the capital tied up in existing loans into a financing channel for new credit, these steps aim to bolster lending to the Greek economy while keeping capital ratios in check.

Bank	Securitized Loans (€ bn)	RWAs Released (€ bn)
Eurobank	> 7	> 2.5
Piraeus Bank	8.6	≈ 2.3
Alpha Bank	3.8	≈ 1.8

What it means for the Greek economy

synthetic securitizations are expanding banks’ capacity to extend new loans without increasing capital requirements. This can support economic activity by sustaining credit growth amid tighter balance-sheet constraints.

In practice,the approach helps lenders balance risk and liquidity,enabling more lending activity while keeping regulatory capital metrics manageable. The trend also reflects a broader shift in how banks manage capital efficiency in a tightening funding habitat.

Evergreen perspectives

As banks increasingly rely on securitization to fund lending, regulators and investors will watch for credit quality, market liquidity, and the durability of these financing structures through economic cycles.

For other European banks, these developments illustrate a potential pathway to maintain lending momentum without rapid capital build-up, especially where regulatory capital requirements intersect with enterprising lending goals.

Risks and considerations

While the model can unlock capital for growth, it depends on the performance of securitized assets and market conditions. ongoing oversight will be crucial to managing concentrations and ensuring resilience against shifts in interest rates or macroeconomic stress.

Engagement

What impact do you foresee from synthetic securitizations on lending dynamics in Greece and the wider euro area?

Do you think this financing model coudl become a common tool among european banks, or will it remain more niche?

Disclaimer: This article is for general informational purposes and does not constitute financial advice.

Share your views in the comments and follow for further updates on how bank capital strategies shape the lending landscape.

>Eurobank €2.8 bn Amortizing bonds SME term loans 27 Jun 2025 National Bank of Greece (NBG) €2.5 bn Covered bonds Residential mortgages 05 Oct 2024 Attica Bank €1.5 bn Asset‑backed securities Mixed performing portfolio (consumer & micro‑enterprise) 21 Nov 2024 Piraeus Bank €0.9 bn Hybrid notes Auto loans & credit‑card receivables 13 Feb 2025

*While Attica Bank’s 2024 securitization focused on non‑performing loans,the recent €1.5 bn deal also included a sizable tranche of performing consumer loans, demonstrating a blended approach to portfolio optimisation【1】.

Greek Banks boost Lending capacity with €10 bn in Performing‑Loan Securitizations

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Why Greek Banks Are Turning to Performing‑Loan Securitizations

• Capital relief: By packaging performing loans into asset‑backed securities, banks can off‑load risk‑weighted assets and free up Tier 1 capital.
• Loan‑growth strategy: Additional capital enables banks to expand credit lines to SMEs, households, and the renewable‑energy sector, aligning with Greece’s growth targets.
• Regulatory incentives: The European Central Bank’s (ECB) Capital Requirements Regulation (CRR) II rewards banks that reduce exposure to on‑balance‑sheet risk, encouraging securitization of high‑quality assets.
• Investor appetite: International investors seek stable, Euro‑denominated cash‑flow assets, making Greek performing‑loan securities an attractive diversification option.

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Key Players and Recent Transactions

Bank	Transaction Size	Type of Securities	Primary Asset Class	Proclamation Date
Alpha Bank	€3.2 bn	Senior secured notes	Consumer loans & mortgage loans	12 Mar 2025
Eurobank	€2.8 bn	Amortizing bonds	SME term loans	27 Jun 2025
National Bank of Greece (NBG)	€2.5 bn	Covered bonds	Residential mortgages	05 Oct 2024
Attica Bank	€1.5 bn	Asset‑backed securities	Mixed performing portfolio (consumer & micro‑enterprise)	21 Nov 2024
Piraeus Bank	€0.9 bn	Hybrid notes	Auto loans & credit‑card receivables	13 feb 2025

*While Attica Bank’s 2024 securitization focused on non‑performing loans, the recent €1.5 bn deal also included a sizable tranche of performing consumer loans, demonstrating a blended approach to portfolio optimisation【1】.

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How €10 bn of Performing‑Loan Securitizations Translate Into Lending Capacity

1. Capital efficiency boost – roughly €1.5 of regulatory capital is released for every €1 bn of performing loans securitized, based on a typical risk‑weight reduction from 100 % to 20 % under CRR II.
2. Potential loan‑originations – The €10 bn securitization pipeline could support an extra €7‑8 bn of new credit, assuming a 70 % loan‑to‑capital conversion rate.
3. Sector impact –

• SMEs: Estimated €3 bn of additional financing, helping meet the EU’s target of 25 % SME loan growth by 2027.
• Households: Up to €2.5 bn for residential mortgages, supporting the “Housing for All” initiative.
• Green projects: €1 bn earmarked for renewable‑energy loans, aligning with Greece’s 2030 climate goals.

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regulatory Backdrop Shaping the Securitization Surge

• ECB Supervisory Review and Evaluation Process (SREP) 2024 – Encourages banks to demonstrate “risk‑reduction” through securitization,offering a 10‑bp capital relief for each €1 bn of high‑quality performing assets transferred.
• Greek Central Bank (Bank of Greece) Guidance (2024) – Requires that servicing agents, such as Cepal Hellas Financial services, be licensed and supervised, ensuring transparency and investor confidence【1】.
• EU Lasting Finance Disclosure Regulation (SFDR) – Securitizations tied to green loans receive favorable ESG ratings, attracting sustainability‑focused funds.

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Benefits for Borrowers, Banks, and Investors

• Borrowers gain faster credit approvals as banks can underwrite new loans without waiting for capital to rebuild.
• Banks improve liquidity ratios (LCR, NSFR) and lower funding costs by accessing the European capital markets.
• Investors receive predictable cash‑flow streams,low default risk,and,in many cases,ESG‑linked yields.

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Practical Tips for Accessing Greek Performing‑Loan Securitizations

1. Identify the servicing agent: Look for licensed servicers like Cepal Hellas, which ensure proper loan administration and reporting.
2. Review the prospectus: Pay attention to tranche seniority, over‑collateralisation levels, and covenant structures.
3. Assess ESG tags: Securities linked to green loans often enjoy higher ratings and may qualify for tax‑advantaged accounts.
4. Monitor secondary‑market liquidity: Larger issuances (e.g., Alpha Bank’s €3.2 bn notes) tend to have tighter bid‑ask spreads.
5. Consider the buy‑and‑hold vs. trading strategy: Senior secured notes are ideal for long‑term income, while hybrid notes may suit active traders seeking yield‑curve positioning.

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Case Study: Attica Bank’s €1.5 bn Mixed‑Portfolio Securitization

• Structure: 70 % senior secured notes backed by performing consumer loans, 30 % mezzanine tranche covering a small pool of residual non‑performing assets.
• Servicing: Managed by Cepal Hellas Financial Services, a single‑member Société Anonyme licensed by the Bank of greece, ensuring compliance and efficient loan‑servicing processes【1】.
• Outcome:
• Capital release: Approx. €1.2 bn of regulatory capital freed, enabling an additional €850 m in new lending.
• Investor response: Issuance oversubscribed by 25 %, with participation from German pension funds and French sovereign wealth entities.
• Market impact: Set a precedent for other mid‑size Greek banks to blend performing and non‑performing assets,expanding the overall securitization market depth.

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