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EBA warns of ‘higher risks’ in loans still under moratoria
Loans still under moratoria may be at a particularly high risk of impairment, according to fresh data from the European Banking Authority this week. The figures also revealed signs of a more general deterioration in asset quality within the EU.
The EBA said that Stage 2 loans made up about 9.1% of the overall EU loan stock at the end of the fourth quarter of 2020, a 110bp increase versus the previous quarter.
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