Eurozone | How bad must bank loan losses be to threaten recovery?

Banks entered the coronavirus crisis with stronger balance sheets and supported the economy with emergency lending, as did government guarantee schemes. But if the crisis worsens, we find loan losses could deplete bank capital to a point that would require decisive policy action at the EU level to avoid financial stability issues.

What you will learn:

  • What are the losses from new lending during the pandemic? 
  • What's the future of lending? 
  • How can banks avoid financial stability issues? 

Topics: Scenarios, Forecasts, Financial stability, Eurozone, Economic risk, Financial risks, Banking

Ipad Frame (7)-1