The Hellenic Competition Commission (HCC), taking into account the structure of the domestic banking sector as well as the continued low interest rates offered by the Greek banks, compared to the Eurozone average, has initiated, by decision adopted on f 18.07.2024, a sector inquiry into the sector for deposit interest rates, exercising the respective powers conferred on it pursuant to Article 40 of Law 3959/2011.
The Authority's preliminary investigation in public sources lead to two main observations: first, the increased spread between the average deposit and lending interest rate (interest margin), (b) second, the low degree of pass-through of changes in the interest rates of the European Central Bank (ECB) to the domestic deposit market compared to the European average.
According to publicly available data, interest rate margins for both new and existing loans and deposits in Greece had increased by close to 60% over a period of approximately 2.5 years (from January 2021 to August 2023). Α gradual – albeit still slight – decline of interest rate spreads appears to have begun since May 2024.
In addition, from July 2022 to September 2023, the European Central Bank (ECB) gradually increased the deposit facility rate, after a fairly long period of zero and negative interest rates. Subsequently, these increases were partially passed on to the deposit rates offered by the Greek banks, however the pass-through was limited and slow in comparison both to other member states and to the domestic banking system’s past practice.
Through the sector inquiry, the HCC shall investigate the conditions of competition in the market for bank deposits, with a view to identifying possible distortions and to submitting proposals to promote competition in the market, to the benefit of depositors (households and businesses).
Publication of Interim Report
The Hellenic Competition Commission has published the Interim Report of the Sector Inquiry into Bank Deposits, which commenced in July 2024 and which is available ( in Greek) here.
This Interim Report outlines the structure of the bank deposit sector, supply and demand conditions, provides an in‑depth examination of the parameters that determine interest rate levels, and records the evolution of deposit interest rates from 2019 to early 2025.
The main focus of the inquiry is bank deposits (current accounts, savings accounts, and time deposits), which constitute a key source of funding for credit institutions and a primary savings vehicle for households and businesses. Particular emphasis is placed on fixed term deposits, as they represent the main savings product in the Greek market, in contrast to savings accounts, which in practice function mainly as payment accounts with minimal or zero returns. Loans are excluded from the scope of the inquiry due to their high degree of customization, relevant state interventions, and the nature of mixed deposit‑investment products, which involve investment risk and would distort the ability to draw general and reliable conclusions.
The methodology of the Report is based on a combination of quantitative and qualitative tools: questionnaires to systemic and non‑systemic banks, data from the Bank of Greece, analysis of internal bank documents, literature review, and consumer research on the savings habits and preferences of individuals and businesses. In addition, the Competition Commission collaborated with external scientific expert Professor Markos Zachariadis.
Through this inquiry, the Interim Report highlights the complex and multifactorial nature of the issue of low deposit interest rates in the domestic market and identifies the following concerns/findings related to the factors influencing interest rate formation:
- the oligopolistic structure of the market and high barriers to entry,
- various parameters, most notably the excess liquidity of banks, which may reduce banks’ incentives to more fully and rapidly incorporate increases in ECB policy rates,
- consumer inertia in searching for and potentially switching providers, which may reinforce the already oligopolistic market structure.
By documenting concerns and presenting preliminary positions and proposals, the Report aims to stimulate an open and constructive dialogue with competent authorities and stakeholders, with the goal of strengthening competition to the benefit of depositors.
The sector inquiry shows that:
- the increase in deposits during the period under review mainly concerns highly liquidity, low‑yield products,
- the pass‑through of ECB policy rate increases to deposit rates has been limited, delayed, and uneven,
- the opportunity cost of holding bank deposits remains high, encouraging a shift toward alternative investments,
- the structure and characteristics of the Greek banking market do not favor strong competition in deposit interest rates.
Based on the above, the Report concludes with findings and proposals aimed at enhancing transparency, comparability of deposit products, consumer mobility, and the more effective transmission of monetary policy changes to the benefit of consumers. These proposals aim to improve competition in the bank deposit market and, by extension, support savings and financial stability. Specifically, the Competition Commission proposes:
- Strengthening competition through new market entries and expansions (e.g., Attica/Credia Bank, cooperative banks, Viva Bank), with the aim of exerting pressure for better interest rates.
- Creating state‑backed savings accounts similar to the French Livret A/LEP model, with government‑set interest rates, as a complementary tool for financing the state budget and enhancing returns for small depositors, subject to assessment of feasibility and fiscal effectiveness.
- Developing genuine savings products (e.g., fidelity premiums as in Belgium) that reward capital retention with preferential interest rates, offering a balance between return and flexibility compared to the current situation.
- Increasing depositor mobility through better information and interest rate comparison tools (Bank of Greece publications, comparison websites), simplifying/promoting “provider switching,” potential extension to businesses, and long‑term exploration of account number portability at the European level.
In light of the above, the Competition Commission invites all interested parties to submit their views on the issues under examination via written submissions at This email address is being protected from spambots. You need JavaScript enabled to view it.. by 16 February 2026 and/or by participating in an online consultation to be held in February 2026, at a date that will be duly announced.
The closing date for the submission of written comments was extended to 31 March 2026.
We welcome contributions by stakeholders, which will serve as a valuable guide for the preparation of the Final Report of the Hellenic Competition Commission.
Sector Inquiry into Bank Deposits
Latest Updates
- 05.03.2026 - Sector inquiry by the Hellenic Competition Commission into bank deposits / Public consultation (see Press Release here)
- 13.02.2026 - Tele-conference/Public consultation on the Interim Report in the context of the HCC’s sector inquiry into Bank Deposits (see Press Release here)
- 18.12.2025 - Sector Inquiry into Bank Deposits / Publication of Interim Report (see Press Release here)
- 19.07.2024 - Launch of a public consultation – publication of an invitation to any interested party to submit written observations and comments (see Press Release here).
- 04-15.11.2024 - Questionnaires sent to undertakings operating in the sector concerned.
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Questions & Answers
- General Questions: Scope and Aims of the Sector Inquiry
In markets characterised by tight oligopolies, conditions favouring tacit collusion between competitors may arise. Specific parameters, such as high market transparency, homogeneity of products/services, etc., further intensify such occurrences. If a minimum level of concertation between competitors is not established, tacit collusion as such is not prohibited, as a company is free to monitor and adapt itself to its competitors’ commercial policy. However, even this type of coordination is liable to adversely affect consumers.
The HCC attaches particular importance to the proper functioning of competition in the financial sector as a key driver of Greek economic growth. In this context, it takes the initiative to launch a sector inquiry into bank deposits, availing itself of the relevant possibility provided for by law, to determine whether and to what extent competition between banks is effective and to identify the conditions that may favour concertation between banking institutions, having detrimental effects on consumer welfare.
As part of its sector inquiry into bank deposits, the HCC will mainly focus on the following aspects:
a) the competitive conditions prevailing in the banking sector, with emphasis being placed on bank deposits;
b) the reasons why depositors do not seem to switch to alternative providers other than the banks with which they already hold an account; and
c) to the reasons why banks do not seem to offer higher deposit interest rates.
The sector inquiry into bank deposits aims at helping the HCC get a comprehensive insight into the competitive conditions prevailing in the market concerned, in order to subsequently propose initiatives to promote specific competition policies or regulatory interventions. In that way, the sector inquiry into bank deposits is at the core of the HCC’s overall initiative to take steps to achieve the following goals:
- Restructuring of the Economy
- Promotion of Innovation
- Contribution to the country’s Digital Transformation
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Timeframe
- 26.02.2026 - Tele-conference/Public consultation on the Interim Report
- 18.12.2025 - Publication of Interim Report
- 18.07.2024 - Formal launch of the sector inquiry into Bank Deposits
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Communication with the sector inquiry team
You can contact the Bank-Deposits Sector Inquiry team by email to: This email address is being protected from spambots. You need JavaScript enabled to view it.