The outlook for Greek banks in 2026 remains positive, as despite the decline in interest rates their profitability is expected to stay high, according to the Governor of the Bank of Greece, Yannis Stournaras.
Speaking to the Board of Directors of the Athens Chamber of Commerce and Industry (ACCI) on Thursday, he noted that banks must ensure that credit expansion is based on conservative criteria and procedures, in order to maintain the quality of their assets and effectively address the remaining pockets of credit risk. They must also manage cost issues efficiently and adapt to the changing economic environment and digitalisation trends in order to sustain their profitability in the coming years, he added, while noting that continuous investment in technology is essential so that they can protect themselves against cyberattacks, improve their efficiency, and better respond to the evolving demands of consumers.
In addition, he said, geopolitical risks linked to international developments continue to be the most unpredictable and potentially significant risk factor. Banks should take this into account when setting their dividend policy and maintaining capital buffers. The resilience that has been achieved should not lead to complacency or to decisions with a short-term horizon.
As for the smaller, non-systemic banks, Stournaras said that the Bank of Greece places emphasis on improving the quality of their assets. In this context, the Bank of Greece contacted the affected banks early in 2025, requested the submission of relevant action plans regarding the creation of a minimum level of supervisory provisions, and is monitoring their implementation.
