Greek spreads on the wide side

The spreads between lending and deposit rates in Greece remain higher than in the rest of the eurozone, according to recent data by the European Central Bank (ECB). The trend is mainly maintained by the two largest banks, National and Alpha, whose large deposit bases give them in advantage in financing their lending. Their recent announcements show that ECB’s recent 0.25 percent rise in its benchmark rate was passed entirely on to all their basic lending rates, while increases in their deposit rates were selective and applied only to some categories of accounts.