Greek Banks Resilient: Moody’s

Moody’s underlines the important resilience successful Greek banks, thanks to the simplification of non-performing exposures (NPEs) and caller lending linked to the Recovery and Resilience Facility (RRF). It notes that NPEs person fallen from €47.2 cardinal successful 2020 to €6 cardinal arsenic of March 2025, though astir €78.3 cardinal of indebtedness remains under management, still influencing recognition conditions.

The marketplace remains concentrated, with the 4 largest banks holding implicit 90% of total assets. Despite this concentration, Moody’s underlines that competitory dynamics are evolving and nary antagonistic accommodation is needed for marketplace structure.

Overall, Greek banks payment from amended recognition conditions, improved liquidity, and stable funding, which enhances their resilience against economical and fiscal risks.

Moody’s describes Greece’s macroeconomic illustration (Baa3 – stable) arsenic “Moderate+,” reflecting the country’s comparatively precocious per capita income and maturation momentum, balanced against the mean size of its economy.

Its appraisal of organization strength incorporates the strong advancement successful implementing structural reforms, while vulnerability to geopolitical risks—given Greece’s NATO rank and the war successful Ukraine—is considered limited. Moody’s besides points retired that pursuing the June 2023 elections, which secured a 2nd term for a single-party government, home governmental hazard remains low.

Moody’s rates Greece’s economical strength astatine Baa1, combining the country’s precocious per capita income and maturation momentum with the mean size of its economy. At the aforesaid time, it highlights Greece’s little economical diversification and complexity compared with adjacent countries, arsenic well arsenic its low—though rising—investment rate.

Long-term maturation is negatively affected by unfavorable demographic trends, chiefly owed to an aging colonisation and the emigration of young and educated citizens during the situation years (2012–2015).