Financial Stability Review: May 2026
05/05/2026 - Press Releases
- Risks to financial stability in Greece are associated with rising international energy prices, increased uncertainty due to conflicts and a potential sharp repricing of financial assets internationally.
- The Greek banking sector has sound fundamentals and has strengthened its resilience to potential shocks.
The Executive Summary of the Financial Stability Review was posted today on the Bank of Greece website. The Review is published twice a year by the Financial Stability Directorate.
The Review examines developments in the macroeconomic and financial environment, assesses the risks to and the resilience of the banking and insurance sectors, as well as of the other sectors of the Greek financial system, and discusses the functioning of financial market infrastructures (i.e. payment systems, central securities depositories and central counterparties).
The present Financial Stability Review focuses on developments in the banking sector over 2025, and also includes three Special Features:
a) Special Feature Ι presents the Systemic Risk Heatmap developed by the Bank of Greece to identify and prioritise the systemic risks (“Systemic Risk Heatmap”) to the Greek financial system, with an aim to track and monitor the evolution of potential vulnerabilities over time.
b) Special Feature ΙΙ analyses recent developments in the use of Distributed Ledger Technology (DLT) in financial markets.
c) Special Feature ΙΙΙ presents the information and communication technology (ICT) third-party risk management framework and its implementation in Greece under Regulation (EU) 2022/2554 (Digital Operational Resilience Act – DORA).
In 2025, Greek banking groups posted profits, after tax and discontinued operations, amounting to EUR 4.7 billion, compared with profits of EUR 4.2 billion in 2024. Underlying this development were higher non-interest income and lower loan loss provisions. Lower income from financial transactions and higher operating costs, mainly owing to increased administrative expenses, had a negative contribution.
The capital adequacy of Greek banking groups remained at satisfactory levels. Specifically, the Common Equity Tier 1 (CET1) ratio on a consolidated basis declined to 15.3% in December 2025, from 16% in December 2024, while the Total Capital Ratio (TCR) decreased marginally to 19.7%, from 19.8% in December 2024.
The quality of credit institutions’ loan portfolios improved. The ratio of non-performing loans (NPLs) to total loans stood at 3.3% in December 2025 (from 3.8% in December 2024), as credit growth was accompanied by a decline in NPLs. This is the lowest level of the NPL ratio since Greece joined the euro area, having largely converged with the average for significant institutions within the Banking Union.
The outlook for the banking sector remains positive, as its strong fundamentals act as a buffer against heightened uncertainty and exogenous risks. However, a continuation of the conflict in the Middle East for a protracted period of time could adversely affect the financial position of businesses and households in Greece, as well as banks' portfolio quality and the implementation of their credit growth plans. Therefore, enhancing the robustness of the financial system is a key priority, while vigilance is required of all stakeholders.
Link:
Executive Summary of the Financial Stability Review, May 2026