Significant increase in banks’ bad loan ratios expected in coming quarters


“The outlook points toward a significant increase in banks’ bad loan ratios in coming quarters, even in more benign scenarios,” European Central Bank Governing Council member Paolo Hernandez de Cos said on Monday, as reported by Reuters.

“Banks should remain prudent on dividend policy while COVID-19 uncertainty persists,” de Cos added. “European cross-border mergers would be particularly positive to enhance the European banking union and increase diversification.”

Market reaction

The EUR/USD pair largely ignored these remarks and was last seen losing 0.33% on a daily basis at 1.1820.



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