The government is stepping up pressure on systemic banks by putting the spotlight on reducing bank commissions for so-called “people’s” transactions. These are everyday transactions that directly affect citizens and have recently come under intense criticism for excessive charges.

They have been the subject of considerable criticism because of the recent criticism of the financial crisis.

The government is increasing pressure on banks, aiming both to reduce excessive fees in everyday transactions and to make the most of the large stock of real estate they hold in their portfolios.

The possibility of an increase in the ENFIA for properties left unoccupied by banks and servicers was also confirmed by Ministry of National Economy and Finance spokesman Homer Tsapalos,

The “people’s” transactions concern basic banking services related to the everyday life of citizens. The first changes focus on five key categories of transactions that are in the government’s crosshairs:

– Transfers: Currently, fees for money transfers are up to €5 for amounts up to €1,000. The government cites an EU directive that sets caps on commissions, with the aim of limiting them to between €0.50 and €1.20.

The government is citing an EU directive that sets caps on commissions, with the aim of limiting them to between €0.50 and €1.20.

– Bill payments: The current charge is up to €1 per transaction. A reduction of at least 50% is planned, so that the cost to the consumer is significantly lower.

– Card replacement: Citizens are currently charged up to €5 for replacing a bank card. The government aims to completely zero this charge.

The government aims to completely zero this charge.

– Loan file fees: Fees charged for processing loan applications are expected to be reviewed, with the aim of reducing costs for borrowers.

– Withdrawals from ATMs in remote areas: In areas where only one bank network operates, the abolition of fees for withdrawals is being promoted to make it easier for residents in remote areas.

Only those who have only a limited number of bank branches are allowed to operate in remote areas to facilitate people from out-of-town.

Although these transactions account for about 13% of banks’ total commission income, estimates suggest that reducing them by even half will not significantly affect banks’ overall profitability.

For 2024, “popular” commissions are estimated to bring in a total of €70-80 million to the four systemic banks, against total commission income of €600 million.

Yesterday, the spokesman for the Ministry of National Economy and Finance, Omiros Tsapalos, stressed that the government is seeking a balance between the demands of citizens and the stability of the banking system. “We are not pampering the banks, but there has to be a balance,” he said, clarifying that any gains from commissions and interest rates must be accompanied by a strengthening of social responsibility.

He even gave the outline of the government’s policy, stating that the plan focuses on three pillars:

• 1. Reducing “people’s” procurement: Enhancing the use of the IRIS platform and reducing charges for day-to-day transactions.
• 2. Strengthen competition between banks: Aiming to reduce costs for customers.
• 3. Real estate utilization: increasing the ENFIA on idle properties to boost market supply and reduce purchase and rental prices.

According to a statement, “the government is closely monitoring the banks’ moves and is signalling that if there are no substantial initiatives, there will be legislative interventions, both in procurement and in the management of the real estate stock.”

Direct Payment Services

Moreover, from 2025, all banks in Greece will be obliged to offer direct payment services, in accordance with the updated EU directive that is being incorporated into national legislation following a Regulation of the European Parliament and the Council.

The changes provide that from 9 January 2025 payment service providers in euro area member states must offer the possibility of receiving direct credit transfers in euros. From 9 October 2025, this obligation is extended to the sending of direct credit transfers.

At the same time, banks and payment service providers will not be able to charge higher fees for these direct transfers than for standard credit transfers deposited on the beneficiary’s account on the next business day. Direct payments, which will be completed in as little as 10 seconds, will provide citizens and businesses with faster transactions at no additional cost.