Bank of Greece Governor Highlights Banking Sector Challenges and Economic Progress

The future of Greece's banking sector is closely tied to the country's macroeconomic progress and global developments, Bank of Greece (BoG) Governor Yannis Stournaras stated at the Greek-Israeli Chamber of Commerce and Technology event on Wednesday, CE Report quotes Athens-Macedonian

He warned that geopolitical and financial upheavals could negatively impact both the global financial system and Greece’s businesses and households. To strengthen the banking sector, Stournaras emphasized the need to boost bank profitability and improve regulatory capital, which would accelerate the amortization of Deferred Tax Credits (DTCs) and enhance Greece’s investment-grade status.

Highlighting the vulnerability of Greek banks due to their reliance on interest rate revenues, he urged financial institutions to expand their loan portfolios and increase fee-based income, including private asset management and insurance products.

Stournaras reaffirmed Greece’s commitment to economic reforms, stressing that while progress has been made, efforts must continue to fully recover from the decade-long debt crisis and align income levels with the European average.