2023-12-13 07:55:22
European banks remain sufficiently solid despite risks linked to rising interest rates, the European Banking Authority (EBA) said on Tuesday.
Banks must face still high uncertainties on the macroeconomic front and the outlook remains uncertain, with inflationary pressure still present and geopolitical risksnoted the ABE in its annual study of the risks threatening the sector.
Their results benefited from the increase in interest rates by rebuilding their margins, but a turning point may have been reached, according to the institution, which focused on 123 banks from 26 countries in the European Union and the European Economic Area. This same increase in rates led them reduce their loans. It also had a negative impact on the real estate market. At the same time, climate and environmental, social and governance (ESG) criteria are taking up more and more space in their strategy.
Ready for a major crisis?
Despite the deterioration of macroeconomic conditions, the quality of bank assets remained relatively stable with in particular a level of so-called rotten debts at a historic low, noted the ABE. Their solvency ratio (CET1 equity), 16% in June, has also reached record highs.
Liquidity remains high, but has started to normalize from its highest levels reached during the Covid-19 pandemic, she noted.
Top 3 of our online banking comparison
Excluded: 150 free and free Gold card at Fortuneo
Up to 120 offered for a bank account
Hello Prime: 80 bonuses offered + 6 months 1
The Authority estimated in July that the banks of the Old Continent were ready to face a major crisiseven if the French banks had performed less well in their stress test due to the poor results of Banque Postale.
Reproduction forbidden.
1702462653
#European #banks #remain #strong #high #level #uncertainty