Assessment of cyclical systemic risks
The Bank of Greece assesses the intensity of cyclical systemic risks on a quarterly basis.
The assessment takes into account, inter alia, the “standardised credit-to-GDP gap”.
In addition, the Bank of Greece examines a number of supplementary indicators to monitor the build-up of cyclical systemic risks. Specifically, such indicators cover credit developments, private sector indebtedness, potential overvaluation of property prices, the soundness of credit institutions, risk pricing and external imbalances.
The analysis of supplementary indicators points to emerging cyclical systemic risks in certain areas, such as the financing of non-financial corporations, residential property prices and the current account balance, confirming, however, that there is no evidence of excessive credit expansion.
