Bank of Greece data show a 2.7-billion-euro jump in bank deposits in June as well as a €2 billion credit expansion, with a growth rate of 6.9% and 4.5% respectively. Corporate credit in particular showed an annual expansion rate of 10%.
Governor Yannis Stournaras attributed the increase in deposits to “high economic growth, due to tourism and the subsidies that the government continues to give,” as he noted, but also to the fact that “banks have started to lend to businesses.”
Lending even surpassed the levels observed during the pandemic, when the banks, assisted by the loans of the Hellenic Development Bank, urgently increased market liquidity to support the economy. The net flow of financing – i.e. net lending after loan repayments are deducted –exceeded €2 billion euros in one month compared to €577 million in May and €607 million in April.
The strong credit expansion, the largest in the last 10 years, was the main factor for the increase in business deposits, which according to BoG data reached €2 billion in June, while the rise in household deposits was relatively smaller, at €721 million, boosted by various government support measures.