S&P Stress Test: Greek Banks Face Three Shock Scenarios, Systemic Risk Low

S&P outlines three stress scenarios for Greek banks, including simultaneous default of top-10 corporate borrowers, a cyclical recession in key growth sectors, and a revaluation shock from widening Greek bond spreads or refinancing of cheap 2021-22 debt at higher rates. S&P emphasizes these are not its base case, but the revaluation scenario is deemed more likely than non-payment. The analysis highlights Greek banks' vulnerability to sovereign-bank nexus and interest rate repricing, though systemic defenses are considered adequate.