Euro zone banks see a further drop in soured debt: ECB

According to European Central Bank supervisor Andrea Enria, euro zone banks foresee a further decline in the quantity of bad loans on their books,

an estimate that may be unduly optimistic given that some enterprises are still suffering from the pandemic’s effects.

“All banks basically expect a continued decrease in gross NPLs (non- performing loans) until at least the end of 2022 and we are of course concerned that the expectation may be a bit optimistic,”

Enria told a Finnish supervisory conference. “We always recommend that banks be careful and not jump the gun in term of releasing provisions and create profitability now that they could regret later,” he added.

Story by : Norvisi Mawunyegah