Challenges in the European banking sector
Read our latest report which analyses the challenges that banks across Europe face in the wake of the financial crisis
Since 2011 European banks have moved to address the vulnerabilities revealed by the financial crisis. However, they continue to face several key challenges. This report studies the significance and dynamics of a number of these challenges, both at EU level and within major countries.
Some of the challenges analysed are the need for further cross-border consolidation, pressure on profitability, a vast stock of non-performing assets (NPAs, which include non-performing loans, NPLs, and foreclosed assets), lending recovery and a need for heightened loss-absorbing capacity.
The report also focuses on the relevance of real estate activity within the current NPA disposal process and a recent acceleration in lending.