EBA warns of bad loan build-up amid coronavirus

By Tyler Davies
26 May 2020

The European Banking Authority warned this week that lenders could struggle with asset quality problems for years as a result of Covid-19, publishing the findings in its first sensitivity analysis of the EU banking sector.

The EBA based its analysis on data from its 2018 stress test, examining balance sheet sensitivities to three different scenarios predicting a part of the outcome of the coronavirus pandemic.

It was keen for the market to understand that European banks were in a good position to ...

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