Bank of Greece: Risks to Financial System Remain Limited

Risks to Greece's financial system are contained in the third quarter of 2026, according to the Bank of Greece. The central bank's assessment indicates a neutral risk environment, leading it to maintain the countercyclical capital buffer rate for Greece at 0.5%. This rate, set to apply from October 1, 2026, reflects a cautious approach to managing systemic risks.

The Bank of Greece evaluates cyclical systemic risks by considering credit-to-GDP gaps, the capital buffer guide, and additional indicators of risk accumulation. While analysis points to the beginnings of risk buildup in areas like financing for non-financial corporations, housing prices, and the current account balance, it confirms the absence of excessive credit expansion.

Consequently, the Bank of Greece sees no need to alter the existing countercyclical capital buffer. This measure, adopted early in the economic cycle, aims to activate before risks become either subdued or elevated. For the period between October 1, 2025, and September 30, 2026, the required buffer for credit institutions remains at 0.25%.