The Bank of Greece has maintained Greece’s countercyclical capital buffer at 0.5% for the fourth quarter of 2026, continuing the target positive neutral rate applicable since Oct. 1. It assessed cyclical systemic risks as low and the broader risk environment as standard, consistent with its previous quarterly assessment. The standardized credit-to-GDP gap remained negative at minus 17.5 percentage points in the first quarter of 2026, leaving the European Systemic Risk Board buffer guide at zero. Additional indicators point to emerging risks in credit growth to nonfinancial corporations, residential real estate prices and the current account, but the central bank found no excessive credit growth. The 0.5% rate reflects its framework for activating a positive neutral buffer when cyclical risks are neither elevated nor subdued.
Bank of Greece keeps countercyclical capital buffer at 0.5% as cyclical risks remain low
The Bank of Greece kept the countercyclical capital buffer at 0.5% for the fourth quarter of 2026 after assessing cyclical systemic risks as low. Emerging risks remain in corporate credit growth, residential property prices and the current account, but there is no excessive credit growth.