Athens, December 18, 2025 — The Greek Competition Commission has published an interim report from its sector inquiry into the banking deposits market, identifying structural weaknesses that have contributed to persistently low deposit interest rates despite increases in European Central Bank policy rates.
The inquiry, launched in July 2024, examines the functioning of the market for bank deposits, including current accounts, savings accounts, and time deposits, which constitute a core source of funding for credit institutions and a primary savings vehicle for households and businesses. The interim report focuses in particular on time deposits, which remain the main savings product in Greece, unlike savings accounts that largely function as payment accounts with minimal or zero returns.
According to the authority, deposit rates in Greece between 2019 and early 2025 increased only marginally and unevenly, with limited and delayed pass-through of ECB rate hikes. The report finds that the opportunity cost of holding bank deposits remains high, encouraging depositors to seek alternative investment options.
Oligopolistic market structure
The authority identifies the oligopolistic structure of the Greek banking sector and high barriers to entry as key factors limiting competition in deposit rates. Excess liquidity held by banks is also cited as reducing incentives to compete aggressively for deposits, as institutions face limited pressure to attract additional funding.
Consumer inertia further reinforces these dynamics, with depositors showing low levels of switching and limited engagement in comparing interest rates across providers. This behavior, the authority notes, entrenches existing market structures and weakens competitive pressure.
Limited benefits from rate increases
The interim report shows that deposit growth during the review period was concentrated primarily in highly liquid, low-yield accounts. At the same time, the transmission of monetary policy tightening to deposit rates was described as restricted, slow and asymmetric, with banks capturing a larger share of the benefit from higher interest margins.
The authority concludes that current market conditions do not support strong competition on deposit rates and that structural features of the Greek banking market limit depositor choice in practice.
Policy proposals and next steps
To address these issues, the Competition Commission puts forward a series of preliminary proposals aimed at improving transparency, comparability of deposit products, and depositor mobility. Suggested measures include encouraging new market entries and expansions, such as through smaller banks and cooperative institutions, as well as improving access to interest rate comparison tools and simplifying account switching procedures.
The authority also raises the possibility of introducing state-backed savings accounts modeled on systems such as France’s Livret A, subject to further assessment of fiscal feasibility and effectiveness. Other proposals include the development of genuine savings products that reward long-term deposits while maintaining flexibility.
Stakeholders are invited to submit written comments to the Competition Commission by February 16, 2026, and to participate in a public consultation scheduled for February 2026.
