In a speech to the Hellenic Bank Association, Greece's Ministry of National Economy and Finance cast the now healthier domestic banking sector as a driver of the next phase of economic growth rather than a passive beneficiary of it. The minister called on banks to use their capital strength, liquidity and profitability to finance a more productive economy through larger and more outward-looking companies, mergers and acquisitions, technology and energy investment, artificial intelligence adoption, and support for small and medium-sized enterprises that can scale. He also linked banks' social legitimacy to day-to-day issues such as fees, deposit returns for small savers and service access where branches have closed. The speech also set out Greece's position on the redesign of Europe's financial architecture. It backed deeper Banking Union, the Savings and Investments Union, the digital euro and pan-European bank consolidation, but argued that supervision must not become so heavy that banks spend more effort managing rules than financing the economy. It also warned that consolidation should not leave peripheral markets with weaker banking coverage or less influence over decision-making, and described a preferred model in which larger cross-border banks coexist with strong regional banks. Separately, the minister reviewed recent government action on private debt, including a broader out-of-court workout mechanism with the entry threshold lowered to EUR 5,000, faster procedures, stronger primary-residence protection through that mechanism, a higher protected bank-deposit threshold of EUR 1,600, the possibility of lifting seizures for borrowers who restructure and remain compliant, activation of a new 72-instalment arrangement for old debts, and retroactive relief for more than 100,000 borrowers under the Katseli law framework. He also said banks should create a path back into the banking system for borrowers who have restructured and are servicing their debts, while servicers should offer sustainable restructurings and greater transparency.
Ministry of National Economy and Finance (Greece)2026-07-14
Greece's Ministry of National Economy and Finance urges banks to finance productivity growth and outlines safeguards for EU banking integration
In a speech, Greece's Ministry of National Economy and Finance urged banks to turn their stronger balance sheets and liquidity into financing for productivity growth, including business scaling, mergers and acquisitions, artificial intelligence adoption and SME expansion. It also backed deeper EU banking integration and larger cross-border banks, while warning against excessive supervisory burdens and the risk that peripheral markets lose banking coverage. The speech also reviewed recent private-debt measures and called for restructured borrowers to regain access to bank finance.