The Bank of Greece published its Q1 2025 assessment of cyclical systemic risks in Greece, concluding that risks are low and the overall risk environment is standard. On this basis, it kept the countercyclical capital buffer (CCyB) rate for Greece unchanged at 0.25%. The review considered the standardised credit-to-GDP gap, the European Systemic Risk Board buffer guide, and additional indicators tracking the build-up of cyclical systemic risks, including credit developments, private sector indebtedness, residential and commercial real estate prices, external imbalances, the banking sector and capital markets. The buffer guide remains at zero because the standardised credit-to-GDP gap has been negative since Q3 2012 and stood at -31.8 percentage points in Q2 2024, while the broader indicator set suggests emerging risks in areas such as credit growth to non-financial corporations, residential real estate prices and the current account, but not excessive credit growth overall. The 0.25% CCyB rate was set in October 2024 and will become applicable from 1 October 2025.
Bank of Greece 2025-01-22
Bank of Greece maintains Greece’s countercyclical capital buffer at 0.25% after assessing cyclical systemic risks as low
The Bank of Greece's Q1 2025 assessment of cyclical systemic risks indicates a low-risk environment, maintaining the countercyclical capital buffer (CCyB) rate at 0.25%. The review, considering factors like the credit-to-GDP gap and real estate prices, found no excessive credit growth despite emerging risks in certain areas. The 0.25% CCyB rate, set in October 2024, will be effective from 1 October 2025.