Warning on local credit sector’s greed

The interest rate hikes by the European Central Bank and the increase in net interest income lead to an excessive accumulation of profits in Greek and European banks and fuel the inflation of banking greed ("bankflation"), warns the Center for Planning and Economic Research (KEPE).

The phenomenon is particularly pronounced in the Greek banking market, due to its oligopolistic structure and low competition, the analysis emphasizes.

In this context, KEPE recommends that these significant profits of the banks be used for the additional shielding of the sector, through the strengthening of supervisory funds and the faster depreciation of the deferred tax, rather than being given exclusively in dividends.

KEPE highlights the picture of the profitability of banks (both European and Greek) after the start of the cycle of increases in key interest rates by the European...