| Author (Corporate) | European Banking Authority |
|---|---|
| Publisher | EU |
| Publication Date | June 2014 |
| Content Type | Report |
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The European Banking Authority (EBA) published in December 2014 its sixth semi-annual report on risks and vulnerabilities of the EU banking sector. The report highlights that throughout 2014, European banks have continued to take advantage of favourable market conditions to raise capital in preparation for the asset quality reviews (AQR) and the 2014 EU-wide stress test. The average common equity tier 1 (CET1) ratio for the largest European banks reached 11.8 % in June 2014, the highest level since 2009 and broadly in line with the largest US banks. The report informs that market sentiment and confidence is improving. However, it also warns that the signs of recovery remain modest and fragile and that weak macroeconomic conditions can further affect credit quality. The heavy debt overhang, the potential impact of conduct-related issues, and the sustainability of business models and profitability remain sources of concerns. [Note: at the time of creation of this record the DOI link via the Source url was still not operational. The full text of the report can also be found via the related urls] |
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| Source Link | http://dx.publications.europa.eu/10.2853/485929 |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
