The Bank of Greece published its Financial Stability Review on 22 October, naming geopolitical tensions, energy prices, a sharp repricing of assets and developments in frontier artificial intelligence as the main risks. Greek banks' after-tax profits in the first half of 2026 reached 2.6 billion euros, up 3.8%, with core income rising 8.3%. The CET1 common equity ratio eased to 14.8% from 15.4% in December 2025 and the total capital ratio to 19.6%. The non-performing loan ratio stood at 3.4%, from 3.3%.

What it means: The review confirms that the Greek banking system remains profitable and well capitalised, while the small fall in capital ratios is linked mainly to loan growth and distributions to shareholders. For Greek businesses the most useful part is the picture of credit expansion: banks with strong profits and capital above supervisory requirements have room to keep lending, especially for investment projects linked to the Recovery Fund. The slight rise in the non-performing loan ratio shows that the clean-up phase is over and that portfolio quality will now depend on the economy and on borrowing costs. The reference to energy prices is a reminder that energy-intensive businesses remain exposed to new increases, which also affects their credit assessment. The section on artificial intelligence is also of interest: the Bank of Greece is looking both at the risks of its use in finance and at supervision under the AI Act, which means banks and fintechs will be asked to document how they use models in credit decisions. The review also discusses the Commission's July communication on banking sector competitiveness.

Notice: For information only. Not investment advice or a recommendation to buy or sell.

Read the original on Τράπεζα της Ελλάδος

Related service: Consulting

Related stories