Laggard banks show 'worrisomely high' bad loan levels, says EBA

Enria
By Owen Sanderson
26 Jun 2014

The bottom quartile of European banks present “worrisomely high levels” of impaired and overdue loans, the European Banking Authority said this week. The ratio of these loans to total loans is 16% for the bottom quartile, while across the whole banking system it is 6.8%.

In its semi-annual review of risks to the financial system, published on Wednesday, the EBA did acknowledge that European banks had made good progress in raising capital, noting €80bn of euro area capital raising in 2013 and €60bn estimated for 2014.

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