- First-round risks stemming from the Russian invasion of Ukraine are not a fundamental threat to the stability of the EU banking system, but second-round effects may be more material- EU bank capital and liquidity ratios remained strong
- Profitability stabilised at higher levels than in the pre-pandemic period
- Non-performing loan (NPL) ratios declined as asset quality continued to improve
- Cyber and information and communication technology (ICT) related risks remain high
The European Banking Authority (EBA) published today its Risk
Dashboard for the fourth quarter (Q4) of 2021. A special feature
highlights the potential impact of the Russian invasion of Ukraine on
the EU/EEA banking sector. Based on the EBA’s initial assessment, direct
exposures to Russia, Belarus and Ukraine are limited, but second-round
effects may be more material from a financial stability perspective.
EBA
© EBA
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