o_19heefouak9i9v4do11ac41pi7a.pdf

DEVELOPMENT BANKING IN GREECE 1963-2002
Table 14: ETEBA’s loans and securities,
and GDP growth: summary statistics
GDP growth rates (%)
ETEBA loans growth
rate (%)
ETEBA security holdings
growth rate (%)
1965-74 1975-86 1987-2001 1965-74 1975-86 1987-91 1965-74 1975-86 1987-2001
Mean 7.71 2.73 2.55 109.22 -2.11 -6.23 45.34 -0.98 18.15
Median 8.95 4.15 3.30 60.47 -1.51 -7.86 21.85 -2.28 12.75
Std. Dev. 6.57 4.67 2.71 145.76 7.04 8.65 82.86 7.64 39.01
Min. -9.70 -3.90 -2.80 0.59 -12.99 -14.36 -6.21 -9.07 -29.84
Max. 13.20 9.60 7.20 494.73 12.97 5.48 271.46 18.72 102.78
The distinction between the patterns of change in loans and security holdings is
evident from Table 14. The rate of loan growth follows decreasing GDP growth in
all periods up to 1991. The same is true for securities up to the mid-1980s. However,
the period of deregulation sees a rise in total investment in securities, though not
of the same magnitude as that before 1974.
Figure 12b: Investment Bank rates of change in loans
and investments in securities, and GDP (1966-1997)
Source: Investment Bank Annual Reports and author’s calculations
Figure 12b confirms our observation of the relation between rates of change of
long-term financing and GDP growth rates, in this case for Investment Bank. The
positive rates during the 1960s and early 1970s are followed by negative rates in the
turbulent times in the Greek economy from the mid-1970s onwards. On the other
hand, security holdings growth, though at positive rates in the late 1960s, becomes
~ 253 ~