The aim of this study is to provide clarity and transparency as to the methodology developed by Piraeus Bank in order to assess the financial strength, balance sheet quality and capital adequacy of a large number of -mostly European- financial institutions.
The methodology developed allows shortlisting the “preferred” financial institutions and ranking them each year from “best” to “worst”.
Having created the shortlist, the findings can be further used for the following three purposes:
- To select fixed income instruments issued by the shortlisted institutions to be included in Piraeus Bank’s fixed income investment strategy
- To use this shortlist as a starting point for the equity selection process of the above financial institutions
- And last but not least, to evaluate current and potential counterparties for the wholesale banking division