Moody\'s maintains negative outlook

The outlook for Greece\'s banking system remains negative, Moody\'s Investors Service said in a new report.This reflects Moody\'s view that the stressed operating environment, characterized by prolonged economic contraction, will continue to erode banks\' asset quality, capital, profitability and funding, the Voice of Russia reported.According to the report, the deep economic contraction will further increase already high levels of non-performing loans, applying additional pressure on the stressed banking system.Moody\'s expects that non-performing loans will likely exceed 30% of gross loans by the end of 2013, as the banks will remain loss-making in 2013/2014. Moody\'s believes that in the wake of developments in Cyprus, depositors\' confidence will remain highly vulnerable to any negative political or economic developments.