The Greek Competition Authority has published the interim report of its sector inquiry into banking deposits, which commenced in July 2024. This report is now available for public access.

The interim report outlines the structure of the banking deposit sector, analyzing supply and demand, and examines the factors influencing interest rates. It tracks the evolution of deposit account interest rates from 2019 to early 2025.

The focus of the inquiry is on various types of banking deposits, including current, savings, and time deposits, which are crucial for financing credit institutions and serve as a primary savings tool for households and businesses. The report emphasizes time deposits as the main savings product in the Greek market, contrasting with savings accounts that often function primarily as payment accounts with minimal or no returns.

The methodology of the report combines quantitative and qualitative tools, including questionnaires to systemic and non-systemic banks, data from the Bank of Greece, analysis of internal bank documents, literature reviews, and consumer research on saving habits and preferences. The competition authority collaborated with external expert Professor Markos Zachariadis.

The report highlights the complex and multifaceted nature of low deposit interest rates in the domestic sector, noting concerns such as the oligopolistic market structure and high barriers to entry, as well as consumer inertia in seeking and potentially changing providers, which may reinforce the existing oligopolistic market structure.

Through the identification of concerns and preliminary positions, the report aims to foster an open dialogue with relevant stakeholders to enhance competition for the benefit of depositors.

Key findings of the sector inquiry include: an increase in deposits during the examined period primarily involving high liquidity and low yield deposits; limited, delayed, and uneven pass-through of European Central Bank interest rate increases to deposit rates; a high opportunity cost of holding bank deposits, pushing depositors towards alternative investments; and a banking market structure that does not favor intense competition in deposit interest rates.

Based on these findings, the report concludes with observations and proposals aimed at improving transparency, comparability of deposit products, and depositor mobility, as well as more effective pass-through of monetary policy changes for consumer benefit. The competition authority proposes: enhancing competition through new entrants and expansions; creating state savings accounts with government-determined interest rates; developing genuine savings products that reward capital retention; and increasing depositor mobility through better information and comparison of interest rates.

The competition authority invites all interested parties to submit their views on the examined issues via written submissions by February 16, 2026, or participate in a teleconference in February 2026, with the date to be announced soon.

The feedback from stakeholders will serve as a valuable guide for the preparation of the final report by the competition authority. More information regarding the sector inquiry can be found on their official website.