Future of Greece's largest bank lies abroad- CEO

ATHENS, June 22 (Reuters) - The future of National Bank (NBGr.AT), Greece's largest lender, lies abroad as the local market is too small, the group's chief executive told Sunday's Kathimerini newspaper in an interview.

"Indeed, the future of NBG, so that it remains independent, lies abroad. The Greek market is small and finite," National Bank CEO Takis Arapoglou told the paper.

He said NBG must expand internationally to continue its autonomous growth. The group currently has operations in Bulgaria, Serbia, Romania, Albania and Turkey. It was the first Greek bank to venture into Turkey with the buyout of Finansbank.

Arapoglou said the group is closely following markets in Russia, Ukraine and Egypt with an eye to expand if the right opportunity arises. But he played down prospects for a move in Greece.

"A buyout or merger in Greece or Cyprus would give us extra size ... but for the time being at least there is no such mood among big banks," Arapoglou said.

National Bank's (NBG.N) CEO also told the paper he expects the U.S. economy to start recovering early next year and that bank shares are close to bottoming. Shares of NBG have lost more than 28 percent so far this year.

"The crisis is not yet over but we expect the beginning of an improvement in the U.S. economy from the start of next year. With the market discounting a stabilisation, half way through the cycle, I think share prices, banks at least, are close to their bottom levels," Arapoglou said. (Reporting by George Georgiopoulos; Editing by Paul Bolding)