Fin. Min. implores Greek banks to raise deposit rates

Finance Minister Christos Staikouras has called on Greek banks to raise deposit rates and hold down loan rates.

As he characteristically stated, speaking today at the 20th Bank Management Conference: “The banking system must contribute to credit expansion and the rapid implementation of debt settlements, reform the pricing policy of loans, deposits and commissions in a way that does not disproportionately burden businesses and households, and to show sensitivity to vulnerable social groups”

From there, he referred to the initiatives and actions of the Government in the financial sector, in order to face the important challenges of the last two and a half years, but also the great responsibilities of the banking system itself in the current era of high – international – uncertainty and rising risks .

Mr. Staikouras emphasized that the government has substantially and effectively supported the country’s banking system, so that it can adequately face endogenous and exogenous, old and new challenges, turn the page and play a central role in the pursuit of sustainable economic development . As he said, “as a result of the effective economic policy and the positive prospects of the Greek economy, the banking system today presents a much stronger image and holds auspicious prospects”.

The challenges

He pointed out, however, that the challenges of the period are enormous, which is why he underlined that “the banking system must:

– contribute to credit expansion with all available tools, in order to strengthen the perimeter of potential customers for financing, taking into account the new needs created by the changing economic environment,

– intensify efforts for the rapid implementation of debt settlements through the new and modern out-of-court mechanism, in order to be adequately shielded against the new risks that are lurking,

– reform the pricing policy for loans, deposits and fees, in a way that does not disproportionately burden businesses and households, as we exit the low interest rate environment;

– show sensitivity to vulnerable social groups,

– train staff and customers in the digital transition of their operations,

–contribute to the green transformation of the economy”.