It's not clear whether National Bank continues to operate with negative shareholder equity. It has received government aid in recent months which may have tipped its shareholder equity position back into positive territory. The Hellenic Financial Stability Fund has promised to provide up to 6.9 billion euros to recapitalize National Bank.
The bank has said that it will have positive equity of 6.2 billion euros ($7.8 billion) after recapitalization.
The bank lost more than $19 billion last year. The largest loss maker for National Bank was its holding of the debt of the Greek government. It lost more than 10 billion euros ($12.7 billion) after taxes in the restructuring of the debt.
Yesterday, the European Central Bank said it had halted normal liquidity provision to some Greek banks because of their low levels of capitalization. The ECB’s rule prohibit liquidity provision to banks with negative equity, according to Reuters.
When Reuters broke the news of the ECB action yesterday, it was not clear which banks or how many of them were effected. One person told Reuters four banks were affected.
Without ECB funding, the cut-off Greek banks are now reportedly turning to Greece’s national central bank for Emergency Liquidity Assistance.
National Bank could not be reached for comment.
John on Twitter. (Market and financial news, adventures in New York City, plus whatever is on his mind.) You can email him at firstname.lastname@example.org.
We also have two NetNet Twitter feeds. Follow
CNBCnetnet for the best of the days posts, including breaking news. Follow
NetNetDigest for a feed of every single post each day.
You can also be our friend on Facebook. Or subscribe to John's Facebook page.
We're on Google Plus too! Click here and add NetNet to your circles. And here is John's Google+ page.
Questions? Comments? Tips? Email us atNetNet@cnbc.comor send a text message to: 9170740-8477.
Call us at 201-735-4638.