EBA Risk Dashboard Shows Improvement
Positive news from the European Banking Authority (EBA) this week as their periodic risk assessment of the EU banking sector shows on-going improvements.
The second quarter update to their Risk Dashboard, which summarises the main risks and vulnerabilities in the EU banking sector, shows that European Banks continue to have a high capital ratio, at an average of 14.5%. EU banks also continue to improve the quality of their loans portfolio with the ratio of non-performing loans at 3.6%, a steady improvement. Profitability, although increasing, remains a concern, with the average return on equity 7.2%.
The ability to identify and analyse trends, risks and vulnerabilities like these across borders and sectors is essential to ensuring stable financial markets. Harmonised definitions are key to providing the open, comparable data behind this analysis – in XBRL format.
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