FRANKFURT (Reuters) – Euro zone banks face rising credit risk as pandemic-related public support measures are withdrawn, even if initial expectations on the troubles were overly pessimistic, European Central Bank supervisor Andrea Enria said on Tuesday.
“Several early indicators point to potential asset quality deterioration in the future,” Enria said in a blog post as he outlined supervisory priorities for the year ahead.
“Non-performing loan ratios in sectors more vulnerable to the impact of the pandemic have also started increasing,” he said. “This is especially noticeable in accommodation and food services, and the air transport and travel-related sectors.”
(Reporting by Balazs Koranyi; Editing by Alex Richardson)
