BANCI | Noutati EBA

EBA Risk Dashboard confirms steady improvements in the EU banking sector but banks profitability and business model sustainability remain key challenges

Autor: Bancherul.ro
2018-01-16 23:41

The European Banking Authority (EBA) published today its regular Risk Dashboard. Using quantitative risk indicators, along with the opinions of banks and market analysts from its Risk Assessment Questionnaire, the EBA´s dashboard identified ongoing improvements in the repair of the EU banking sector but also residual risks in NPLs and profitability.

In the third quarter of 2017, EU banks´ continued to strengthen their capital ratios. The CET1 ratio experienced an increase of 30 bps, from 14.3% in Q2 2017 to 14.6% in Q3 2017. This growth was jointly driven by an increase in CET1 capital and decrease in the total risk exposures amount, mostly for credit risk. Compared to the previous quarter, the fully loaded CET1 ratio also increased by 30 bps to 14.3%.

The ratio of non-performing loans (NPLs) kept a modest downward trend, decreasing by 30 bps to 4.2%, and suggesting that, although slowly, supervisory efforts are bearing their fruit. However, the results of the EBA Risk Assessment Questionnaire suggest that major impediments to the resolution of NPLs remain, such as lengthy and expensive judiciary processes and the lack of liquidity in secondary NPL markets. In this respect, the recently published EBA NPL transaction templates are a first contribution to widen the investors´ base and reduce asymmetric information in the secondary market.

Profitability indicators have improved slightly but sustainable returns remain elusive for many banks. On a year-on-year comparison, the average ROE rose by 1.7 percentage points (pp) to 7.1% in Q3 2017, mainly driven by the annual increase in net trading income (8.9% in Q3 2017). Nevertheless, the widespread dispersion among countries (with the ROE ranging from -20.0% to 18.1%), along with high operating costs, continues to dampen profitability prospects for the European banking sector as a whole. Also the results of the EBA Risk Assessment Questionnaire show that banks´ profitability remains a concern, even though banks, as well as market analysts, expect a slight improvement in the near future.

The loan-to-deposit ratio continued to decrease, reaching 117.2% with a 30 bps decline from the previous quarter. The leverage ratio remained broadly stable, increasing 10 bps from 5.3% (Q2 2017) to 5.4% (Q3 2017). In September 2017, the average liquidity coverage ratio (LCR) was 144.6%, well above the threshold defined as the liquidity coverage requirement for 2017 (80%). Regarding the future of EU banks´ funding, the results of the EBA Risk Assessment Questionnaire suggest that banks are expected to attain more instruments eligible for MREL, even though they consider the uncertainty on the specific MREL requirements as a constraint to their issuance.

The results of the Risk Assessment Questionnaire also show that cyber risk and data security are considered as the main drivers for the increase in operational risk. They are also assumed to be the main factors that might negatively influence market sentiment, along with the uncertainties around the UK´s decision to leave the EU.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: Noutati EBA

Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis

Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis – Consolidated version updated on 2 December 2020 1. Executive summary The outbreak of the COVID-19 pandemic and the response detalii

The EBA reactivates its Guidelines on legislative and non-legislative moratoria

After closely monitoring the developments of the COVID-19 pandemic and, in particular, the impact of the second COVID-19 wave and the related government restrictions taken in many EU countries, the European Banking Authority (EBA) has decided to reactivate its Guidelines on legislative and non-legislative moratoria. This reactivation will ensure that loans, which had previously not benefitted from payment moratoria, can now also benefit from them. The role of banks to ensure the continued flow of lending to clients remains of utmost importance and with the reactivation of these Guidelines, the EBA recognises the exceptional circumstances of the second COVID-19 wave. The EBA revised Guidelines, which will apply until 31 March 2021, include additional safeguards detalii

EBA publishes 2018 EU-wide stress test results

The European Banking Authority (EBA) published today the results of the 2018 EU-wide stress test, which involved 48 banks from 15 EU and EEA countries, covering broadly 70% of total EU banking sector assets. The adverse scenario has an impact of -395 bps on banks´ CET1 fully loaded detalii

EBA launches 2018 EU-wide transparency exercise

The European Banking Authority (EBA) launched today its fifth annual EU-wide transparency exercise. In December 2018, together with the Risk Assessment Report (RAR), the EBA will release over 900000 data points on about 130 EU banks. The data will cover capital positions, risk exposure amounts, detalii

Vezi toate stirile

21.12.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Daniel Antonescu , Director Coordonator al Functiilor de Control Intern
Banca Romaneasca

... 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

împrumut
Vreau să apreciez pe Karin Sabine un împrumut de 9000€ pentru mine. Dacă aveți nevoie de un ... detalii
împrumut
Vreau să apreciez pe Karin Sabine un împrumut de 9000€ pentru mine. Dacă aveți nevoie de un ... detalii
Buna ziua! Am nevoie de ajutor!
Buna ziua! Am trimis activare cont si imi scrie ca au expediat QR Cod pe posta dar nu mia venit ... detalii
Înșelătorie
Mare atenție la firma vex group, te pune să investești 250 € în Forex, câștigi ceva și ... detalii
interdictie conturi ING
Buna ziua, o situatie ca cele de mai sus am patit si eu, cu diferenta ca Revolut a deblocat contul ... detalii

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