AFP, Paris :
EU-wide banks have improved their capital positions in 2015, though banks must increase efforts to reduce bad loans, the European Banking Authority (EBA) said in a new report published Tuesday.
“This transparency exercise, the EBA’s fifth annual release of consistent bank by bank data, demonstrates an increasing resilience in the EU banking sector as capital levels have strengthened further,” said Piers Haben, director of oversight at EBA, in a statement.
“Nonetheless, EU banks will need to continue addressing the level of non-performing loans which remain a drag on profitability,” he added.
The EBA’s report covered 105 banks based in 21 European countries which amounts to 70 percent of banking activity in the European Union, for the period from late December 2014 to end June this year.
It showed that in general European banks strengthened their capital positions by raising additional equity and retaining earnings, “placing them in a better position to increase lending to the real economy,” said the authority based in London.
EU-wide banks have improved their capital positions in 2015, though banks must increase efforts to reduce bad loans, the European Banking Authority (EBA) said in a new report published Tuesday.
“This transparency exercise, the EBA’s fifth annual release of consistent bank by bank data, demonstrates an increasing resilience in the EU banking sector as capital levels have strengthened further,” said Piers Haben, director of oversight at EBA, in a statement.
“Nonetheless, EU banks will need to continue addressing the level of non-performing loans which remain a drag on profitability,” he added.
The EBA’s report covered 105 banks based in 21 European countries which amounts to 70 percent of banking activity in the European Union, for the period from late December 2014 to end June this year.
It showed that in general European banks strengthened their capital positions by raising additional equity and retaining earnings, “placing them in a better position to increase lending to the real economy,” said the authority based in London.
