IMF: Greek banks remain robust amid external pressures

In its report on the findings of the Financial Sector Assessment Program (FSAP) for Greece, the International Monetary Fund (IMF) assesses, among other things, that short-term risks to financial stability are limited and remain manageable, despite geopolitical tensions in the Middle East.

The main recommendations addressed to the Bank of Greece, as the competent microprudential and macroprudential authority as well as the resolution authority, include:

a. strengthening the monitoring of large exposures within the framework of systemic risk assessment,
b. enhancing the governance of Less Significant Credit Institutions (LSIs), particularly regarding the proportion of independent board members in larger and higher-risk institutions,
c. strengthening the supervisory framework for credit servicers, including the effectiveness of loan management practices and the introduction of enhanced transparency requirements,
d. preparing for the potential use of a combined set of resolution tools and ensuring readiness for the application of resolution measures for LSIs,
e. enhancing the use of quantitative methodologies for the countercyclical capital buffer, as well as developing internal stress-testing scenarios for macroprudential supervisory purposes.

The Bank of Greece welcomes the findings of the IMF assessment, which acknowledge the significant progress achieved in the banking sector and the high standards of supervision maintained by the Bank of Greece. The Bank of Greece will take the necessary steps to implement the recommendations within the prescribed timelines.

With regard to other findings, the IMF notes that:

Significant Credit Institutions are well capitalised, highly liquid, and resilient to adverse stress scenarios.

The Bank of Greece benefits from strong institutional independence and applies high supervisory standards, while the authorities have drawn important lessons from previous crises and are well prepared to address future shocks.

The Bank of Greece’s approach to the supervision of Less Significant Credit Institutions is comprehensive, systematic, and proactive.

The Bank of Greece has adopted a forward-looking approach to systemic risk and macroprudential supervision.

It is noted that the assessment was conducted between September 2025 and the end of January 2026 and included meetings between the IMF mission and senior representatives and staff of the Bank of Greece, the Ministry of National Economy and Finance, the Hellenic Deposit and Investment Guarantee Fund, and the Hellenic Capital Market Commission. The Financial Sector Assessment Program (FSAP), established in 1999, is a comprehensive evaluation of a country’s financial sector conducted by the IMF, focusing on financial stability, the quality of the regulatory and supervisory framework, and the capacity to manage and resolve financial crises. This assessment for Greece is the first since 2006.