EBA risk assessment warns about the impact of a deteriorating macroeconomic environment

• While bank profitability has improved, it remains uncertain how it will evolve amid lower GDP growth and rising interest rates.
• Bank capital and liquidity ratios remain high but have declined slightly year on year. The average common equity tier 1 (CET1) ratio has reached 15.0% while the liquidity coverage ratio (LCR) 165.1%.
• Despite low non-performing loans (NPL) volumes, banks classify 9.5% of loans in stage 2, the highest level since 2018 when reporting was initiated.
• Credit spreads have widened for bank debt instruments.
• ICT-related risks remain high.

Overview of key figures

Notes to editors

The transparency exercise is part of the EBA's ongoing efforts to foster transparency and market discipline in the EU financial market, and complements banks' own Pillar 3 disclosures, as laid down in the EU Capital Requirements Directive (CRD). Along with the dataset (over 1.2 million data points, with on average more than 10,000 data points per bank), the EBA also provides a wide range of interactive tools that allow users to compare and visualise data across time and on a country and a bank-by-bank level.

The exercise results are based on the supervisory data submitted to the EBA via the European Centralised Infrastructure of Data (EUCLID) platform. It is the platform and data infrastructure developed and used by the EBA to gather and analyse regulatory data from a wide range of financial institutions. It covers supervisory, resolution, remuneration and payments data. Thanks to EUCLID, the public will be able to gain a wider access to EU banking and financial data.