EBA risk assessment warns about the impact of a deteriorating macroeconomic environment. „Banks should prepare for a likely deterioration in asset quality. ICT-related risks remain high.”
While bank profitability has improved, it remains uncertain how it will evolve amid lower GDP growth and rising interest rates.
Bank capital and liquidity ratios remain high but have declined slightly year on year. The average common equity tier 1 (CET1) ratio has reached 15.0% while the liquidity coverage ratio (LCR) 165.1%.
Despite low non-performing loans (NPL) volumes, banks classify 9.5% of loans in stage 2, the highest level since 2018 when reporting was initiated.
| The European Banking Authority (EBA) published today its annual risk assessment of the European banking system. The report is accompanied by the publication of the 2022 EU-wide transparency exercise, which provides detailed information, in a comparable and accessible format, for 122 banks across 26 EEA / EU countries. Banks should prepare for a likely deterioration in asset quality and strengthen their screening systems and controls to ensure a strict compliance with sanctions to prevent legal and reputational risks. |
Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
