Deposits of around €19 billion have been returned to banks by households and businesses since 2021 to date, recording an increase of 16% according to data from the Bank of Greece.

As noted in the Bank of Greece's financial bulletin, significant inflows of deposits from households have also been recorded mainly in the three-year period 2021-2023, while the "fatigue" recorded in the first quarter of 2024 is mainly attributed to a shift towards alternative savings options that offer higher returns than deposits.

Nevertheless, in August the data are encouraging for a return to the upward trend as bank deposits of non-financial corporations and households increased by €0.8 million and those of households also increased by almost €1.0 billion. In the same month, the annual growth rate of household deposits with agreed maturity (time deposits) slowed further (to 6.3%) as the reallocation of funds from overnight deposits to time deposits, which took place in 2023 following the tightening of monetary policy, appears to have come to an end.

However, data released by the Bank in its Economic Bulletin show that net inflows of deposits from households and businesses in 2021 were €8.5 billion, €5.5 billion in 2022, and €5 billion in 2023, with the result that today their total has reached €146.8 billion, up from €126.2 billion at the beginning of 2021.

This development mainly reflects the consolidation of depositors' confidence in the banking system and the positive outlook for the Greek economy as a whole.

On the lending side, the picture is less encouraging. Following the peak reached in September 2022 (12.3%), banks' credit expansion to businesses fell significantly due to higher interest rates and weaker economic growth, which to some extent also leads to lower loan demand. However, Bank of Greece data show that as of September 2023, the annual growth rate of business loans has recovered.