Europe’s banks could face even bigger pandemic hit, says ECB

Credit risk in the euro zone’s banking sector is very high and deterioration in asset quality could become much worse in the second wave of the COVID-19 pandemic, European Central Bank supervisor Andrea Enria told Belgian newspapers.

“In a second wave (of the pandemic) with a more sluggish recovery, the impact on capital and the deterioration of asset quality could become much more significant,” Enria told De Tijd and L’Echo newspapers.