The European Banking Authority (EBA) just called for urgent action to be taken in regards to European banks’ bad loans. Because Italy is not the only country having to grapple with this problem: EBA’s chairman, Andrea Enria, is worried that ten European countries have more than 10% in non-performing loans (NPLs), which shows the extreme fragility of their banking system. Those NPLs are loans for which the payments are late for 90 days or more. Here are the NPL ratios of the banks of those ten countries (source: EBA’S Risk Dashboard, pp. 10 and 27): Greece 47.1% Cyprus 46.7% Portugal 19.8% Italy 16.4% Slovenia 16.3% Ireland 14.4% Bulgaria 13.2% * Hungary 12.8% * Romania 10.7% * Croatia 10.5% * (* non-members of the euro zone) We can see already that the banking systems in Greece and Cyprus are factually in default, since almost half of their loans are NPLs – they can only survive with money injections from the EU and the IMF. And several c...
from GoldBroker.com https://www.goldbroker.com/news/new-warning-european-banks-bad-loans-1081
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