Stournaras: Greek Banks in Much Stronger Position

Greek banks are now in a much stronger position to support economic growth and absorb potential shocks, said Bank of Greece Governor Yannis Stournaras at The Economist’s ‘The World Ahead 2026: Athens Gala Dinner’. He emphasized that enhanced resilience—confirmed by recent EU-wide stress test results—improved market access, and regained investment-grade status provide solid foundations for 2026, especially amid high global uncertainty. However, he cautioned that despite stronger fundamentals for European and Greek banks, 2026 outlooks still carry significant downside risks, mainly from external and structural factors. Geopolitical risk remains the dominant source of uncertainty, as ongoing conflicts, trade tensions, and tariffs could impact banks via weaker growth prospects and increased market volatility. Over the past decade, the Greek banking sector has undergone radical restructuring: profitability, liquidity, loan portfolio quality, and capital position have all improved markedly, supported by Greece’s macroeconomic recovery, positive fiscal developments, and stable financial conditions. Stournaras highlighted a virtuous feedback loop linking economic recovery, fiscal improvement, and banking sector progress. Key metrics reflect this: the capital ratio rose from just 13% in December 2009 to 20.4% by September 2025; the non-performing loans ratio fell from nearly 7% in 2016 to just 1.8% in September 2025; and return on equity reached 10.7% for the first nine months of 2025. On the euro, he expressed dissatisfaction with its pace of adoption as a global reserve currency, despite favorable macroeconomic conditions in the eurozone.