(ANSA) – ROME, FEBRUARY 10 – ECB Banking Supervision is “overall satisfied” with the resilience of the European banking system during the pandemic, however “the impact of the pandemic is not yet over. Banks must keep a close eye on the possible consequences on their balance sheets and, in particular, strengthen risk control and governance mechanisms “. The stock of non-performing loans of European banks continued to decline in 2021 following the sale and reduction plans and credit quality remained “robust also thanks to” anti-crisis measures such as moratoriums but “there are signs of deterioration” ” in particular on those sectors of the economy that have benefited most from the “measures” launched by governments, according to what the ECB banking supervision writes in the note on the banks’ Srep exercises according to which “these developments must be monitored with caution”.
European banks have “a solid capital and liquidity position” and “overall capital requirements and guidance only increase marginally, to 15.1% of risk-weighted assets, in 2022” from 14.9% of last year. The ECB underlines that it will not extend the derogation from the additional capital requirements defined by the ‘Pillar 2 Guidance’ beyond December 2022, and from March 2022 the supervisory measures that allow them to exclude exposures with central banks from the leverage ratios will also return into force.
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Source: Ansa
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