Morningstar DBRS says Greek banks are among Europe's strongest performers in cutting credit risk costs, though their levels remain among the highest on the continent. The average European banking sector cost of credit risk fell to 25 basis points in the first half of 2026, from 30 in 2025 and 49 in 2019. Yet 29 of the 53 banks in its sample reported higher credit risk costs in the first half of 2026 than in 2025, and costs have started rising in northern and central Europe, including Britain, France, the Netherlands and Sweden. The agency expects credit risk costs to rise moderately over the next 12 to 18 months amid renewed interest rate and inflation pressures, geopolitical uncertainty and potential energy supply disruptions linked to the Middle East. European banks are seen as sufficiently capitalised to absorb higher losses, while Greek lenders must keep converging towards lower European credit risk levels.
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EUR/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.12376 |
| Change that session | +0.22% |
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