Milena Apostolaki has launched an attack on the government over deposit rates following the Competition Commission’s report
The PASOK MP said: «The final report by the Competition Commission confirms what we have repeatedly raised in parliamentary interventions. Greek banks offer depositors some of the lowest returns in the eurozone, while posting successive record profits.
Since 2024, when we raised the issue in a parliamentary question, we have highlighted the provocatively low deposit rates and the wide gap between them and lending rates. We have also raised the excessive bank fees, inadequate supervision, distortions of competition and the need to protect depositors from opaque charges.
What was the government’s response? “That interest rates are set within a framework governed by the market, not determined by whichever government is in office, unless we are talking about other systems of economic organisation.”
Today, the Competition Commission finds that the four systemic banks hold more than 90% of deposits. It also notes that increases in ECB interest rates were passed on to savers only to a limited extent.
It proposes four specific measures, starting with stronger competition through the entry of new banks and the expansion of other providers. Next comes the creation of state savings accounts, modelled on the French system, with interest rates set by the state.
It also recommends offering deposit products with genuine savings features and preferential reward rates. Finally, it advocates improving depositor mobility, by enabling customers to compare rates and switch banks more easily.
When we called for action, government officials invoked market rules and accused us of referring to a different economic system, ignoring EU law. Today, the independent authority is proposing even state-set interest rates for certain deposit products.
The government knows there is a problem but continues to do nothing. Will it adopt the proposals and act, or will it continue to leave depositors at the mercy of banks’ decisions, protecting their dizzying profits?
We will not speak of vindication today, although the report confirms what we have been highlighting for years. We will speak of vindication when depositors see a meaningful improvement in the returns on their savings».