Banks are not paying attention to new risks – ECB chief supervisor issues warning. Number of bad loans has been increasing since 2023, albeit at a low level.

The ECB currently monitors around 110 major banks within the euro zone, for example Deutsche Bank and Commerzbank. The proportion of “bad loans” (the EBA uses the NPL ratio) is a “stable” 1.8 percent. Those particularly affected here are Greece (NPL rate 4.1 percent), Hungary (3.1%) and Poland (4.4%)