Featured Product

    EBA Publishes Risk Dashboard for the Second Quarter of 2018

    October 08, 2018

    EBA published the periodical update to its risk dashboard for the Second Quarter of 2018. The dashboard summarizes the main risks and vulnerabilities in the EU banking sector using quantitative risk indicators. In the second quarter of 2018, the updated risk dashboard showed sustained improvements in the management of nonperforming loans (NPLs) across EU, with bank profitability remaining a key challenge.

    The dashboard showed that capital ratios of European banks remained high, in line with the first quarter of 2018. The common equity tier 1 (CET1) ratio remained at 14.5%, with a slight increase in the value of CET1 capital, accompanied by an increase in total risk exposures. CET1 ratios remained above 12% for all countries in the sample. Additionally, EU banks continued to improve the overall quality of their loan portfolio. The ratio of NPLs to total loans kept the downward trend and achieved a level of 3.6%, the lowest since the NPL definition was harmonized across European countries. The leverage ratio (fully phased-in) remained at 5.1% when compared to the first quarter of 2018. The asset encumbrance ratio decreased from 28.4% in the first quarter of 2018 to 28% in the second quarter of 2018. The liquidity coverage ratio rose to 148.2% from 147% in the first quarter of 2018, remaining well above the 100% requirement.

    The data in the risk dashboard are based on a sample of 150 banks, covering more than 80% of the EU banking sector (by total assets), at the highest level of consolidation, while country aggregates may also include large. IFRS 9, which entered into force on January 01, 2018, may have had an impact on some of the ratios included in the dashboard.

     

    Related Links

     

    Keywords: Europe, EU, Banking, Basel III, Risk Dashboard, NPLs, IFRS 9, EBA

    Featured Experts
    Related Articles
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796