National Bank of Greece

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This article is about a commercial bank. For Greece's central bank, see Bank of Greece.

The National Bank of Greece (NBG; Greek: Εθνική Τράπεζα της Ελλάδος) (NYSE: NBG)(LSE: NBGA)is the largest and oldest commercial bank in Greece.

[edit] History

NBG was founded in 1841 in Athens, making it the oldest bank in the country. It was NOT government-owned from its inception but had the right of note issue, which it lost in 1928 when the newly-established Bank of Greece took over as the country's central bank. Its status was changed to government-owned when, during the first World War, the Bank refused to finance new military equipment for the Greek government. The government then issued legislation that permitted it to appoint its own people to the Bank's board.
In 1899 NBG acquired the Privileged Bank of Epirothessaly (Pronomiouchos Trapeza Epirothessalias).
In 1904 NBG established Banque d’Orient, together with Nationalbank für Deutschland, which almost immediately withdrew from the venture. The Greeks kept the branches in Saloniki, Smyrna and Alexandria.
In 1907 NBG chose Cyprus as the location for its first branch outside Greece.
In 1919 NBG acuired the Bank of Crete (Trapeza Kritis).
In 1923 the Treaty of Lausanne provided for a compulsory exchange of populations between Greece and Turkey, leading to the departure of the Greeks from Smyrna, resulting in the closure of Banque d’Orient's branch.
In 1930 NBG and Bank of Athens combined their activities in Egypt into a joint subsidiary, Banque Nationale de Grèce et d’Athènes.
In 1932 NBG acquired Banque d'Orient (Trapeza Anatolis).
In 1939 it established a subsidiary in New York, Hellenic Bank Trust Company.
In 1953 the Greek government forced NBG to merge with Bank of Athens to form National Bank of Greece and Athens, later shortened to National Bank of Greece.
In 1960 Egypt nationalised all banks in Egypt, including Banque Nationale de Grèce et d’Athénes, which it merged into National Bank of Egypt.
In 1965 NBG acquired Trapeza Epagelmatikis Pistis.
In 1978 the Greek government permitted the formation of Arab-Hellenic Bank with 49% Arab ownership, as an exception to its prohibition on foreign banks owning more than 40% of the equity of a Greek bank. NBG held 51% and provided most of the bank staff. The Libyan Arab-Foreign Bank and Kuwaiti Investment Organisation held 40% between them while other Arab investors held 9%. That same year NBG opened a branch in Cairo.
In 1994 NBG incorporated its branches in Cyprus into a subsidiary—National Bank of Greece (Cyprus)
In 1995 the Greek government dissolved the insolvent Arab Hellenic Bank at a cost to Greece's Deposit Guarantee Fund of Euro 1.5m in payments to depositors.
In 1998 NBG merged with the National Mortgage Bank of Greece (Ethniki Ktimatiki Trapeza Ellados), itself the result of the merger of the National Mortgage Bank and the National Housing Bank of Greece.
In 2002 NBG merged with ETEBA – National Investment Bank for Industrial Development.
In 2005 Bank of Nova Scotia acquired and merged in NBG Canada.
In 2006 NBG acquired 46% of the shares of Finansbank in Turkey, and 99.44% of Vojvođanska banka in Serbia.

Source: Tschoegl, A. 2004. Financial Integration, Dis-integration and Emerging Re-integration in the Eastern Mediterranean, c.1850 to the Present. Financial Markets, Instruments and Institutions 13 (5): 244-284.