Page 23 - EBA 2013.2869 Risk Assesment Report final proof4

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R I S K A S S E S S M E N T O F T H E E U R O P E A N B A N K I N G S Y S T E M
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0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
Dec 09
Mar 10
Jun 10
Sep 10
Dec 10
Mar 11
Jun 11
Sep 11
Dec 11
Mar 12
Jun 12
Sep 12
Dec 12
Figure 11: Impaired loans and past due (> 90 days) loans to total loans (
source:
KRI) — 5th and
95th percentiles, interquartile range and median
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
Dec 09
Mar 10
Jun 10
Sep 10
Dec 10
Mar 11
Jun 11
Sep 11
Dec 11
Mar 12
Jun 12
Sep 12
Dec 12
Figure 12: Coverage ratio (specific allowances for loans to total gross loans;
source:
KRI) — 5th
and 95th percentiles, interquartile range and median
increased and represented around 14 % of
total KRI sample assets in December 2012.
Similarly, banks with a coverage ratio higher
than 50 % also increased and represented
29 % of total assets in December 2012 (from
approximately 24 % in June 2012).
Responses to the RAQ indicate expectations
of further marginal deterioration in asset
quality and of further increasing impairment
levels for a majority of banks. Nevertheless,
currently there are more responses that the
general trend in the quality of banks’ credit
portfolios is remaining steady (32 % in June
2013 against only 23 % in June 2012). On the
other hand, there is a strong response de-
crease in saying that the general trend is
marginally improving (a decrease from 23 %
in June 2012 to 9 % in June 2013). In addi-
tion, the responses show expectations of
further increasing impairments from banks
in financially stressed countries, but also in
countries with significant recent asset price
increases.