Credit expansion of 4% is expected for this and next year
The Greek banking sector will see this and next year a credit expansion of 4% per annum, per Eurobank Equities, ensuring resilience in interest income and profitability for Greek banks.
This is ahead of the imminent reduction of interest rates by the ECB, expected to start from the second quarter of this year.
Bank of Greece data put credit growth in January-November 2023 at 2.8%, affected by low financing to households. In contrast, credit expansion to businesses stood at 6% and the net flow of financing – new loans to businesses after repayment of existing debts – amounted to 1.1 billion euros in the same period.
