MNI BRIEF: Higher Rates Highlight Emerging Credit Risks- Buch
The unprecedented rise in ECB interest rates is focusing the attention of bank supervisors on emerging credit risks, ECB Supervisory Board Chair Claudia Buch said tonight. Speaking in Brussels Monday, the chair of the Single Supervisory Mechanism noted signs that the asset quality has started to decline:
“There are already clear indications that the asset quality of significant institutions is beginning to deteriorate.Up to the end of 2022, there had been 32 almost uninterrupted quarters of declining NPLs. Since 2023, however, NPLs have increased modestly, albeit remaining at low levels,” she said.
In the first three quarters of 2023 there was a 1.8% increase from the end of 2022, amounting to €6 billion.