The Financial Stability Report, published twice a year by the Financial Stability Directorate, was posted today on the Bank of Greece’s website.
The Financial Stability Report examines developments in the macroeconomic and financial environment, assesses the risks and resilience of the banking sector, insurance companies, and other sectors of the financial system, and analyzes the functioning of financial market infrastructures (payment systems, central securities depositories, and central counterparties).
This Report focuses on developments in the banking sector in 2025, while also presenting three Special Topics:
a) Special Topic I presents the assessment framework developed by the Bank of Greece for identifying and grading systemic risks (“Systemic Risk Heatmap”) of the Greek financial system, aiming to capture and monitor the evolution of potential vulnerabilities over time.
b) Special Topic II analyzes recent developments in the use of Distributed Ledger Technology (DLT) in financial markets.
c) Special Topic III presents the framework for managing risks associated with third-party Information and Communication Technology (ICT) service providers and its implementation in Greece pursuant to Regulation (EU) 2022/2554 (Digital Operational Resilience Act - DORA).
In 2025, Greek banking groups reported earnings after taxes and discontinued operations of €4.7 billion, compared to earnings of €4.2 billion in 2024. This development was driven by an increase in non-interest income and a reduction in credit risk provisions. Negative factors included a decrease in income from financial transactions and an increase in operating expenses, mainly due to higher administrative costs.
The capital adequacy of Greek banking groups remained at a satisfactory level. Specifically, the Common Equity Tier 1 (CET1) ratio on a consolidated basis fell to 15.3% in December 2025, from 16% in December 2024, and the Total Capital Ratio (TCR) edged down to 19.7%, from 19.8% in December 2024.
The quality of credit institutions’ loan portfolios improved. In December 2025, the ratio of non-performing loans (NPLs) to total loans stood at 3.3% (down from 3.8% in December 2024), as credit expansion was accompanied by a decline in NPLs. This ratio is the lowest since Greece joined the euro area and has converged significantly with the average of major banks in the Banking Union.
The outlook for the banking sector remains positive, as strong fundamentals act as a counterweight to increased uncertainty and external risks. However, a prolonged conflict in the Middle East could adversely affect the financial situation of businesses and households in Greece, as well as the quality of banks’ loan portfolios and their ability to achieve their credit expansion targets. Consequently, further strengthening the financial system is a priority, and vigilance is required from all stakeholders.
See here theBank of Greece’s Financial Stability Report (May 2026)