The Bank of Greece published its Q2 2025 assessment of cyclical systemic risks and decided to keep the countercyclical capital buffer (CCyB) rate for Greece unchanged at 0.25%, applicable from 1 October 2025. It assessed cyclical systemic risks as low and characterised the risk environment as standard. The assessment used the standardised credit-to-GDP gap, the European Systemic Risk Board buffer guide, and a set of additional indicators covering credit developments, private sector indebtedness, residential and commercial real estate prices, external imbalances, the banking sector, and capital markets. The buffer guide remained at zero because the standardised credit-to-GDP gap has been negative since Q3 2012 and stood at -30.8 percentage points in Q3 2024; while some indicators suggest emerging risks in areas including credit growth to non-financial corporations, residential real estate prices and the current account, the Bank of Greece concluded there is no excessive credit growth overall. The CCyB rate was set in October 2024 and will take effect from 1 October 2025; the Bank of Greece also noted it operates a “positive neutral” CCyB framework designed to be activated early in the cycle when cyclical systemic risks are neither elevated nor subdued.
Bank of Greece 2025-04-16
Bank of Greece keeps Greece’s countercyclical capital buffer at 0.25% as cyclical systemic risks remain low
The Bank of Greece's Q2 2025 assessment maintains the countercyclical capital buffer (CCyB) rate at 0.25%, effective from 1 October 2025, citing low cyclical systemic risks. Despite some emerging risks in credit growth and real estate, the overall credit growth is not deemed excessive. The CCyB framework is designed to activate early in the cycle when risks are standard.