During the crisis, Greek banks suffered heavy losses from government bond holdings, a surge in bad loans, and a sharp drop in deposits. Non-performing loans (NPLs) once reached nearly 50% of total portfolios, and deposits halved, forcing banks to rely on state bailouts totaling €50 billion, News.Az reports, citing Reuters.
The blog notes that banks have since stabilized, with stronger liquidity, rising profits, and improved capital. In 2025, Greece’s four major banks, National Bank, Eurobank, Piraeus, and Alpha Bank, reported combined net earnings of almost €5 billion ($5.77 billion). Their NPL ratios fell below 4%, close to the European average, and dividend payments resumed after 16 years.
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However, a significant portion of private debt remains outside the banking system. Secondary bad loan markets and asset protection schemes created since 2019 allowed banks to securitize and sell roughly €57 billion in distressed loans. This means many households and businesses remain effectively cut off from bank credit, limiting banks’ ability to support growth. The blog notes these unresolved debts amount to roughly a third of Greece’s GDP, representing one of the country’s most persistent economic challenges.
While loans to non-financial corporations and mortgages are recovering, ECB economists warn that dealing with these vast amounts of distressed debt will remain crucial to sustaining Greece’s economic momentum.
