EU warns banks may face higher bad loan risk when ECB tightens

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EU warns banks may face higher bad loan risk...
 © BusinessMail 2017
By Francesco Guarascio

European Union banks may face increasing risks from bad loans totalling 1 trillion euros ($1.1 trillion) when the European Central Bank cuts back its economic stimulus programme, internal EU documents seen by Reuters said.

Banks have been saddled with more so-called non-performing loans (NPLs) following the 2008 global financial crisis, as companies and households have struggled to pay their debts. This in turn has crimped their ability to make new loans.

While the problem is more acute in countries such as Greece and Italy, which have experienced a prolonged...


EU warns banks may face higher bad loan risk when ECB tightens


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