Bank Profitability in Greece

The Greek banking sector has recently caught the interest of bankers from all over the world when it posted amongst the highest profit results of all and the future is said to be looking good. However, this was not always the case and Greece has had to climb up from difficult times on to its way towards prosperity as a member of the European Union. Although banks act as intermediaries between savers and borrowers, it is possible for the banking sector to actively influence an economy by financing the right projects, while managing risks that will have an impact on its profits. This study attempts to examine the commercial banking sector in Greece in order to ascertain what affects bank profitability and also what may explain the excellent banking sector performance within Greece.