Greek banks report strong recovery and new credit growth potential

The Greek banking sector has largely completed its post‑crisis restructuring. Non‑performing loans have fallen to 3.4% from about 45% during the crisis, and capital adequacy and liquidity ratios remain above supervisory thresholds. All four systemic banks now hold a BBB+ credit rating, just one notch below the top‑grade A tier.

Credit to businesses is expanding at a 9.8% loan‑to‑deposit ratio, roughly double the Eurozone average, while new loan commitments are projected to exceed €16 billion in 2025. The sector’s market capitalisation has risen to over €50 billion, compared with under €1 billion at the height of the crisis. At the annual general assembly of the Hellenic Bank Association, Minister of Finance Kyriakos Piraakakis, association president George Zanias and Bank of Greece governor Giannis Stournaras highlighted that the system is now “healthy, capital‑strong, liquid and profitable.” The next challenge, they said, is to channel this capacity into financing further economic growth, noting that banks lend about €70 for every €100 of deposits, leaving room to increase lending toward enterprises and households.