MIL OSI Translation. Region: Germany / Deutschland –
Source: Federal Financial Supervisory Authority The European Banking Authority (EBA) pointed out in its annual risk assessment on December 11th that a slight decline in the proportion of non-performing loans (NPL) does not give the all-clear for the situation of European banks. It is true that the banks maintained solid capital and liquidity ratios during the Corona crisis and increased their lending to the real economy. However, they had to post substantial provisions for loans to do so, which led to an increase in risk costs. While the Corona crisis did not increase the NPL rate, the proportion of deferred loans has increased according to the EBA.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.