BANCI | ENGLISH

EBA publishes report on risks and vulnerabilities of the EU banking sector

Autor: Bancherul.ro
2014-06-26 08:59

The European Banking Authority (EBA) published today its fifth semi-annual report on risks and vulnerabilities of the EU banking sector. The report shows improvements in market sentiment and confidence which has allowed banks to increase their capital levels ahead of the 2014 EU-wide stress test and to continue the repair of their balance sheets. However, the report cautions about ongoing uncertainties on asset valuations and future profitability in an environment where the signs of recovery remain modest and fragile. The report also draws attention to looming redress costs related to conduct issues as well as to geo-political concerns in emerging markets, which could lead to risk aversion and to an impact on capital flows.

Throughout the first half of 2014, the EU banking sector continued to observe improvements in market sentiment, both on the debt and equity side. European banks have been taking advantage of favourable market conditions by continuing to raise equityahead of the 2014 EU-wide stress test. The capital raised is allowing banks to continue the repair of their balance sheets through front-loading impairments and additional provisioning without deteriorating the absolute levels of tier 1 capital.

The improvements on the banks' asset side were coupled with a deleveraging process, which so far continues in an orderly fashion and has led to a marked decrease of risk weighted assets, a shedding of risky assets and to a shrinking of balance sheets by EUR 3.4 trillion since 2011. The de-risking process is also helping banks to improve their capital ratios.

However, the quality of some banks' loan portfolios has continued to decline and remains a concern, pointing to the need for rigorous asset quality reviews (AQR) with consistent definitions across the EU, as developed by the EBA. The ratio of impaired and past due (> 90 days) loans to total loans has increased and remains worryingly high. In some cases provisioning has not increased in conformity and an increasing dispersion is now being observed, with some banks decreasing their respective coverage ratio levels.

In addition, the heavy debt overhang in the public and private sectors and the necessary restructuring of the debt-burned corporate and households sectors may also pose significant challenges in maintaining adequate capital levels within the EU banking sector. Therefore, the ongoing repair of individual banks' balance sheets and sector restructuring should remain a key priority in the medium term.

Finally, EU banks' income and profitability has continued to face significant headwinds and the looming redress costs related to conduct issues are a key concern. The deterioration in asset quality not only influences earnings and capital strength of the EU banks but also raises questions over near future economic performance. In addition, a number of detrimental business practices of some EU banks have crystallised and costs have increased markedly. Banks with a return on equity (RoE) of less than 4 % represented 39 % of total assets of the sample in December 2013. This, combined with the new regulatory environment, modest growth outlook and a low rate environment, will continue to present a challenge in terms of the sustainability of some banks' business models.

See more here

Source: EBA press release

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

21.11.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Cosmin Florin Paunescu, Șef Serviciu la Serviciul Supraveghere Prudențială - Direcția Supraveghere şi Control, Sector Instrumente şi Investiții Financiare
ASF - Autoritatea de Supraveghere Financiara

Cosmin Florin Păunescu - Șef Serviciu la ... vezi profil

Toate Profilele

Profil de Banca

Banca Transilvania

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

LOAN OFFER
Buna ziua Aceasta pentru a informa publicul larg că oferim împrumuturi celor care au nevoie de ... detalii
!
Greu cu limba romana! Ce legatura are cuvantul "ecosistem" din limba romana cu sistemul de plati ... detalii
Bancnote vechi
Am 2 bancnote vechi:1-1000000lei;2-5000000lei Anul ... detalii
Bancnote vechi
Numar de ... detalii
Bancnote vechi
Am 3 bancnote vechi:1-1000000lei;1-5000lei;1-100000;mai multe bancnote cu eclipsa de ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126