Two weeks ago the results of the Greek banks’ 2018 stress tests conducted by the ECB were published, pointing to no capital shortfalls. Of course, despite the positive outcome of the stress tests, the major challenges are still there: for instance the drastic reduction of the non-performing loans and the ability to provide liquidity to the Greek real economy (new loans to businesses).
The stability-oriented policies have supported both households, by maintaining the purchasing power of their income and savings, and the business sector, by creating an environment of low and stable interest rates, conducive to investment.