The Hellenic Competition Commission has published the final report of its sectoral inquiry into bank deposits. The inquiry was launched in July 2024, taking into account the structure of the domestic banking sector and the persistently low deposit rates offered by Greek banks compared with the European average.
The sectoral inquiry into bank deposits aims to examine competitive conditions in the market from 2019 to early 2025, identify any distortions and make proposals to strengthen competition for the benefit of depositors, both households and businesses.
To conduct the inquiry, the Commission worked with expert Markos Zachariadis (Professor and Chair in Financial Technology & Information Systems, Alliance Manchester Business School) and Pro Rata, which carried out a consumer survey.
Interim report
As part of the inquiry, the HCC published an interim report in December 2025, launching a public consultation. In February 2026, the authority held an event to discuss the main findings.
The final report incorporates comments from participants in the public consultation. The inquiry examines the development of deposits from 2019 to 2024, including balances held by individuals and businesses, the types of deposit products available, consumer trends and the regulatory framework in force.
It also examines how deposit rates are set and the factors that influence them, including the European Central Bank’s policy rates, income levels, capital adequacy, liquidity, profitability, performance ratios and credit risk.
Banking oligopoly
The final report examines competitive conditions in the financial sector, which is characterised by a tight oligopoly comprising Greece’s four systemic banks: Piraeus Bank, National Bank of Greece, Alpha Bank and Eurobank.
The banks offer two main types of product: sight deposits and term deposits. These markets are transparent but show little innovation. Service terms and pricing are largely set individually, while the relevant contracts are generally pre-drafted.
Among the most important factors shaping depositors’ preferences are the level of service, the quality and range of services on offer, product features and pricing. Brand recognition also appears to remain a powerful factor, with more than 90% of deposits held at the four systemic banks.
In the survey, 89% of respondents named one of the four systemic banks as their main or sole bank. Fewer than one in three had opened an account with a bank other than the one they already used. Meanwhile, the overwhelming majority chose to open a term deposit with a bank they already had a relationship with.
Key proposals
The final report proposes strengthening competition through new market entry or expansion by providers. High market concentration and excess liquidity have led to only limited pass-through of ECB rate rises to deposit rates, both for savings accounts and term deposits.
This lack of action by credit institutions could be curbed if enough competitors entered the market and offered better rates to attract funds from depositors.
Government accounts
The report proposes creating deposit accounts at Greek banks along the lines of France’s Livret A and livret d'épargne populaire (LEP), with rates set by the state on the recommendation of the central bank to the Ministry of Finance.
These savings accounts are intended to help finance the state budget and allow withdrawals at any time. Rates on offer were around 3% and 4% until early 2025 (and, from February 2025, 2.4% and 3.5%), compared with 0.05%-0.07% for sight deposits.
In the examples from abroad, deposits are capped at around €20,000 and the account is held at just one bank. Such accounts would complement Treasury bills and government bonds, without complex purchase procedures and with a rate known in advance.
Genuine savings
The report proposes offering products with genuine savings features. One option is a regulated savings account with a fidelity premium (as in Belgium), combining a base rate with a preferential “loyalty” rate on funds kept in the account for a year.
Since the systemic banks may be unwilling to commit to high term-deposit rates for an extended period, one possible solution is to create progressive savings products with a bonus rate and a high degree of standardisation, while offering greater flexibility in how the funds can be used.
Depositor mobility
Bank inaction is linked to depositors’ lack of mobility, owing to search costs and bureaucracy. The publication of rates on the Bank of Greece website since January 2025, along with interest-rate comparison websites, has improved access to information.
The report proposes requiring banks to provide direct access through their websites to the Bank of Greece’s data and to comparison websites. Consumer associations can also help spread information across all demographic groups.
Finally, a European-level system for account-number portability (using an umbrella number) would allow depositors to switch bank accounts while retaining their transaction history, thereby strengthening cross-border competition.