Bad Loans Weigh on European Banks, Regulator Reports
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The skyline of Frankfurt is dominated by German banking giants.CreditBoris Roessler/European Pressphoto Agency
LONDON — Bad loans continue to weigh on the bottom lines of European banks despite efforts by the region’s lenders to raise more capital and improve their risk profiles since the financial crisis, according to regulators.
The European Banking Authority, the banking regulator of the European Union, said on Tuesday that the region’s banks had one trillion euros, or about $1.06 trillion, in so-called nonperforming loans.
Nonperforming loans – those that are at least 90 days overdue or have been previously identified as unlikely to be repaid – accounted for 5.6 percent of total loans held by European lenders at the end of June, the regulator said in a new report on Tuesday. That was down from 6.1 percent at end of December…
Bad Loans Weigh on European Banks, Regulator Reports
