Greek Banks Resilient: Moody’s

Moody’s underlines the significant resilience in Greek banks, thanks to the reduction of non-performing exposures (NPEs) and new lending linked to the Recovery and Resilience Facility (RRF). It notes that NPEs have fallen from €47.2 billion in 2020 to €6 billion as of March 2025, though around €78.3 billion of debt remains under management, still influencing credit conditions.

The market remains concentrated, with the four largest banks holding over 90% of total assets. Despite this concentration, Moody’s underlines that competitive dynamics are evolving and no negative adjustment is needed for market structure.

Overall, Greek banks benefit from better credit conditions, improved liquidity, and stable funding, which enhances their resilience against economic and financial risks.

Moody’s describes Greece’s macroeconomic profile (Baa3 – stable) as “Moderate+,” reflecting the country’s relatively high per capita income and growth momentum, balanced against the moderate size of its economy.

Its assessment of institutional strength incorporates the strong progress in implementing structural reforms, while exposure to geopolitical risks—given Greece’s NATO membership and the war in Ukraine—is considered limited. Moody’s also points out that following the June 2023 elections, which secured a second term for a single-party government, domestic political risk remains low.

Moody’s rates Greece’s economic strength at Baa1, combining the country’s high per capita income and growth momentum with the moderate size of its economy. At the same time, it highlights Greece’s lower economic diversification and complexity compared with peer countries, as well as its low—though rising—investment rate.

Long-term growth is negatively affected by unfavorable demographic trends, mainly due to an aging population and the emigration of young and educated citizens during the crisis years (2012–2015).