Banks in outer EU grew loan reserves most through Covid – EBA
Substantial differences found at country level on degree of coverage ratio build
Banks in Czechia, Hungary, Romania and Bulgaria were among those that built up their coverage ratios for troubled loans the most across the European Union over the 12 months to end-June, data from the European Banking Authority (EBA) shows. In contrast, most lenders in core eurozone countries, such as Italy, France and Germany, either did not increase or witnessed a decrease in the reserves held as a percentage of souring exposures.
In aggregate, EU bank loan-loss reserves for ‘stage two’
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