A report commissioned by Greece's bank bailout fund showsthat National Bank of GreeceSA and Piraeus BankSA will have to substantially overhaul their boards, Kathimerini reported July 9.

Sources told the newspaper that a study by Spencer Stuartshowed that National Bank of Greece Chairwoman Louka Katseli fails to meet allthe requirements of a new law governing bank board members, with other changesalso likely to be required. Piraeus similarly needs to make changes to meet thelaw's mandates and is already in the process of doing so, the newspaper added.

The newspaper's sources said the Spencer Stuart report wasdelivered to the banks a few days after the Hellenic Financial Stability Fund'sexecutive board resigned, reportedly after independent experts deemedits members unfit to oversee the clean-up of bad debt in the Greek bankingsystem. Eurobank ErgasiasSA and Alpha BankAE required only minor adjustments, the report added.

The law was passed at the behest of Greece's Europeancreditors and includes a provision barring anyone to have been a seniorpolitician in the past four years from serving on a bank board, The Wall Street Journal wrote in June.Bankers in Athens had termed the legislation the "Get Katseli" law,the newspaper noted, saying the former socialist politician's appointment in2015 had drawn criticism from the ECB's Single Supervisory Mechanism.

The head of National Bank of Greece has traditionally been agovernment appointee, the Journaladded.