Government pressuring banks on three fronts

Prime Minister Kyriakos Mitsotakis has dismissed the prospect of a windfall tax on banking profits, choosing instead to apply regulatory pressure to address systemic issues within the sector.

Speaking at an investor event in London hosted by the Athens Exchange and Morgan Stanley, Mitsotakis emphasized the government's preference for market-driven reforms over punitive measures. "We know what we want from the banks and have the tools to achieve it," he assured attendees.

This statement comes amid mounting public frustration over high bank fees, limited credit availability and deposit rates that lag significantly behind European averages. Banking stocks rallied on the Athens Exchange following the prime minister's remarks, reflecting investor relief over the government's rejection of taxation.

Central Bank Governor Yannis Stournaras supported the decision,...