ECB identifies 14.4-bn-euro shortfall

The European Central Bank says four major Greek banks would have a capital shortfall of up to 14.4 billion euros ($A22.35 billion) if the economy took a turn for the worse.

The ECB on Saturday gave the four banks concerned - Alpha Bank, Eurobank, NBG and Piraeus Bank - until November 6 to submit plans explaining how they intend to make up that shortfall.

The key financial health check conducted by the ECB's banking supervision department identified a capital shortfall of 4.4 billion euros under a baseline scenario, and 14.4 billion euros in an adverse scenario.

The assessment comprises an asset quality review and a forward-looking stress test, which were aimed at assessing "the specific recapitalisation needs of the individual banks" under Greece's current economic adjustment program.

"The four banks will have to submit capital plans explaining how they intend to cover their shortfalls by November 6," the ECB said.

"This will start a recapitalisation process under the economic adjustment program that must conclude before the end of the year."

Covering the shortfalls by raising capital would "result in the creation of prudential buffers at the four Greek banks, which will improve the resilience of their balance sheets and their capacity to withstand potential adverse macroeconomic shock", the ECB added.