Greek bank shares drop 3.5 pct, underperform Europe

Greek banks shares fell 3.5 percent on Monday, underperforming European peers <.SX7P> and the broader Greek market <.ATG> on worries over the impact of widening yield spreads and austerity measures on the weakening economy.

"The slide reflects market worries over the impact of possible new austerity measures on the real economy and banks, with high borrowing costs making it almost certain that Greece will ask for the activation of the EU/IMF financial backstop," said a trader at a Greek securities firm.

The Athens bourse's banking index <.FTATBNK> was down 3.5 percent to 2,023 points at 0756 GMT, with shares of National Bank <NBGr.AT> down 4.21 percent and Alpha Bank <ACBr.AT> sliding 3.62 percent.