Greek banking sector trends and market activity

The Greek banking sector continues to face shifts in financial performance and market strategy. Recent data from the Bank of Greece and ELSTAT regarding July 2026 indicates a continued slowdown in domestic economy financing. Private sector deposits fell by approximately €2.013 billion, primarily due to a significant decrease in business deposits, even as household deposits saw a slight increase. Similarly, banking credit to businesses experienced a downturn, with a negative net flow of approximately €2.55 billion reported for the month.

In the insurance market, major banks are driving consolidation through bancassurance initiatives. National Bank of Greece has signed a memorandum of understanding to acquire a 30% stake in Allianz European Trust, with plans to offer Allianz products through its branches starting in the first quarter of 2027. Eurobank is expected to complete its acquisition of an 80% stake in Eurolife Life by the third quarter of 2026, gaining full control of the provider. Additionally, CrediaBank is pursuing a merger with Europa Holdings via a share swap to enhance its bancassurance presence by 2028. These moves follow Piraeus Bank’s November 2025 acquisition of Ethniki Insurance for approximately €600 million.

As of late August 2026, Greece is preparing for a series of sovereign credit rating reviews beginning with DBRS on September 4, followed by Scope Ratings, Moody’s, S&P, and Fitch. These assessments will evaluate the country’s declining debt trajectory, supported by a primary surplus of 5.77 billion euros recorded between January and July 2026, alongside planned early debt repayments totaling 12.8 billion euros. While the economy showed 2% GDP growth in the first quarter, challenges remain, including energy price volatility, rising production costs, and the emergence of ‘climateflation’ impacting food and energy costs.