EU Commission: NPL ratio declines slowly
As the European Commission announced yesterday, banks in Europe are slowly making progress reducing their NPLs. According to a report by the EU institution, the share of bad loans was 3.3 percent at the end of the third quarter of 2018. At the same time in 2017, the figure had been 4.4 percent. Vice-President Valdis Dombrovskis said the banks were now “better prepared to withstand economic shocks”. The total volume of NPLs in the EU amounts to 786 billion Euros.
Southern European countries are still particularly affected. Banks in Portugal, Italy, Cyprus and Greece have all been able to reduce part of their NPLs. Nevertheless, the figures are still comparatively high: in Italy it is ten percent, in Portugal eleven. In Cyprus, 22 percent of the loans are classified as distressed and in Greece even 44 percent. Reuters, Press Release EU Commission, NPL Report EU Commission
(Δικαιώματα εικόνων: istockphoto.com/querbeet)
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