o_19heefouak9i9v4do11ac41pi7a.pdf

DEVELOPMENT BANKING IN GREECE 1963-2002
growth between 8% and 13%, the bank’s net profits present negative rates of change.
Nor does the situation change during the late 1990s and early 2000s, with negative
rates of growth predominating. This might mean firstly, that the bank played its developmental
role unsuccessfully in terms of its financial viability, and secondly, that financial
development after the mid-1980s affected it negatively rather than favourably. The
disjunction between ETBA’s rate of change in net profits and both GDP growth and financial
development is evident also from the summary statistics in Table 13. In mean
values net profits growth is positive only in the crisis years and certainly negative during
financial deregulation. However, the inadequacy of data for the first period and especially
before 1968 might indicate a downward bias for the results during the 1960s.
Figure 11c: Rates of change in ETBA net profits,
and GDP (1975 excluded)
Source: ETBA Annual Reports and author’s calculations
Table 13: GDP growth and ETBA net profits
GDP growth rate (%) ETBA: rate of change in net
profits (%)
1965-74 1975-86 1987-2001 1968-74 1976-86 1987-2002
Mean 7.71 2.73 2.55 -18.49 10.31 -33.80
Median 8.95 4.15 3.30 -57.21 -8.95 -24.26
Std. Dev. 6.57 4.67 2.71 82.53 105.60 178.51
Min. -9.70 -3.90 -2.80 -100.0 -91.24 -587.45
Max. 13.20 9.60 7.20 100.0 260.74 256.75
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