Greece’s competition commission is again putting the country’s banks under scrutiny to determine whether they’re “skimping” on interest tacked on to bank deposit rates in the country, compared to financial institutions in other European countries.
In an announcement on Friday, the independent watchdog – officially known as the Hellenic Competition Commission – said it’s focusing on what it calls the “low interest rates offered by the Greek banks, compared to the Eurozone average”. As such an inquiry has commenced into the practice.
It’s reminded that between July 2022 and September 2023 the European Central Bank (ECB) announced successive increases in the deposit facility rate, with banks in Greece only partially following suit – and with delays.
Specifically, the HCC announcement states:
“… 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).”
The competition watchdog last December imposed a massive fine, exceeding 41.75 million euros, against all four systemic banks in the country and the Hellenic Bank Association (HBA) for excessive fees charged on a myriad of transactions, even the simplest, and for cartel-like practices, as it charged.
The Competition Commission also instructed commercial banks operating in Greece to slash fees affecting ATM transactions when using other banks’ cards.
Just as noteworthy is the fact that the accumulated fines are the product of a compromise between the independent watchdog and the banks.
