In January 2026, the Bank of Greece reported a significant decline in private sector deposits, which shrank by 5.18 billion euros. This drop comes amidst a broader reduction in total banking financing for the private sector, which saw an annual change rate decrease to 7.6%. The negative monthly flow of deposits reached 4.845 billion euros, contrasting sharply with a previous positive flow of 6.02 billion euros in the preceding month. Such drastic changes suggest a growing concern regarding liquidity in the banking system, potentially indicating economic instability.

Furthermore, while the general government deposits saw an increase of 339 million euros, the overall outlook remains troubling for the private sector. The annual change rate for private sector deposits decreased slightly to 5.0%, further underlining nervousness among businesses and individuals to maintain funds in banks. The steep drop is especially pronounced for corporate deposits, which fell by 4.43 billion euros, illustrating the challenges companies are facing in securing financial stability amid fluctuating economic conditions.

These developments highlight the fragile state of the Greek banking system and could have far-reaching implications for the economy as businesses reconsider their banking relationships. Stakeholders may have to adapt to this evolving landscape, where confidence in financial institutions is tested and proactive measures might be necessary to restore trust and stability in the economy.