Greek banking sector stability and fraud trends

The Bank of Greece reported a complex economic landscape for the first half of 2026. Non-performing loans (NPLs) saw an upward trend, with household NPLs rising 14.8% to €2.3 billion in the mortgage sector and total household NPLs reaching €2.9 billion. In the corporate sector, NPLs increased by 5.4% to €3.2 billion, though shipping companies experienced a 7.3% decrease. Overall, the total NPL stock for all credit institutions rose 9.3% compared to December 2025.

While card transactions showed growth—with a 9% increase in volume and a 23% decrease in fraud incidents—the central bank issued warnings regarding a surge in instant credit transfer fraud. Data from 2025 indicated that fraud incidents in this category increased by 95%, with the rapid nature of these transactions making fund recovery difficult. Analysis suggests that 64% of these incidents involve fraudulent payment orders following credential theft, while 36% are driven by social engineering.

Recent reports from the Bank of Greece’s Financial Stability Report confirm that 2025 instant credit transfer scams totaled 17 million euros across 9,830 incidents, representing a 41% increase in value. While card-based fraud decreased in the first half of 2026, the sector faces structural shifts. Major investment firms like Morgan Stanley and Goldman Sachs have issued positive outlooks, noting that Greek banks rank among the top three European sectors for upward earnings revisions due to strong net interest income. However, concerns persist regarding the shrinkage of the physical banking network, with reports indicating a 67% loss of bank branches, potentially risking financial exclusion in rural areas.