List of figures

Source: IMF, May 2024

Source: Commission Forecasts, May 2024

Source: Bloomberg

Source: ECB

Source: EBA supervisory reporting data

Source: EBA Risk Assessment Questionnaire

Source: EBA supervisory reporting data (funding plan data)

Source: EBA supervisory reporting data

Source: EBA Risk Assessment Questionnaire

Source: Dealogic, EBA calculations

Source: IHS Markit*

Source: Reporting on MREL and TLAC

Source: EBA supervisory reporting data

Source: EBA supervisory reporting data (funding plan data)

Source: Dealogic

Source: EBA supervisory reporting data

Source: EBA Risk Assessment Questionnaire

Source: EBA supervisory reporting data (funding plan data)

Source: EBA Risk Assessment Questionnaire

Source: EuReCA (EBA’s AML/CFT database)

Source: Green Street

Source: BIS Data Portal, ECB Statistical Datawarehouse (SDW), EBA calculations

Source: S&P Capital IQ

Source: EBA supervisory reporting data

Source: EBA Risk Assessment Questionnaire

Source: EBA supervisory reporting data

Source: EBA Risk Assessment Questionnaire

Source: EBA supervisory reporting data

Figure 65: Network of the EA financial system comprising links between the banking sector and other sectors of the economy, December 2023 (the values of the three largest exposures are shown next to the respective arrow in each of the charts) (EUR bn)

Network of the EA financial system comprising links between the banking sector and other sectors of the economy, December 2023 (the values of the three largest exposures are shown next to the respective arrow in each of the charts) (EUR bn)

Source: EBA supervisory reporting data

Figure 71: Illustrative examples of a bank’s and a private credit provider’s business and how they are linked

Illustrative examples of a bank’s and a private credit provider’s business and how they are linked

Source: EBA, using, for instance, anecdotal evidence, EBA Transparency Exercise data and further market research/analysis

Organisation and governance

Legal and policy framework

Careers

Supervisory convergence

Direct supervision and oversight

Information for consumers

Ad hoc activities

Risk analysis

Reporting frameworks

Data

Publications

Media centre

List of figures

List of Figures

Figure 65: Network of the EA financial system comprising links between the banking sector and other sectors of the economy, December 2023 (the values of the three largest exposures are shown next to the respective arrow in each of the charts) (EUR bn)

Figure 71: Illustrative examples of a bank’s and a private credit provider’s business and how they are linked

List of Figures

Figure 1a: Nominal policy rates worldwide

Figure 1b: Real policy rates worldwide

Figure 2: EU Economic sentiment and employment expectations (seasonally adjusted)

Figure 3a: EURO STOXX (SXXP) and EURO STOXX for banks (SX7E)

Figure 3b: 10Y government yields of selected EU countries

Figure 4: Residential property vs commercial property prices in the EA and EU *

Figure 5: Quarterly and yearly growth rates in asset components, December 2022 to December 2023

Figure 6: Growth in loans and advances by segment, December 2022 to December 2023

Figure 7: EU/EEA banks’ sovereign exposures maturity profile trend (year-end)

Figure 8: Portfolios which banks, by region, expect to increase/decrease in volumes in the next 12 months *

Figure 9: Growth expectations for selected asset classes *

Figure 10a: Growth expectations for lending to households by country

Figure 10b: Growth expectations for lending to NFCs by country

Figure 11: Actual and planned asset composition *

Figure 12: Trend of EU/EEA NPL volumes and ratio, September 2022 to December 2023

Figure 13: NPL cumulative net flows by segment for 2022 and 2023

Figure 14: NPL ratio by country in December 2023 and p.p. change in NPL ratio QoQ and YoY

Figure 15a: NPL ratios of loans (at amortised cost) by segment

Figure 15b: Allocation of stage 2 loans (at amortised cost) by segment

Figure 16: Banks’ expectations on possible deterioration in asset quality in the next 12 months by segment

Figure 17: EU/EEA banks’ yearly debt and capital instrument issuances, 2021 to 2023 *

Figure 18: Cash asset swap (ASW) spreads of banks’ EUR-denominated debt and capital instruments

Figure 19: MREL-eligible liabilities, by instrument, and by category of banks, for instruments with residual maturities between one and two years

Figure 20a: YoY evolution of the asset encumbrance ratio of total assets and collateral received, numerator (encumbered assets), and denominator (total assets and collateral received that can be encumbered), between December 2014 and December 2023

Figure 20b: QoQ evolution of the asset encumbrance ratio of total assets and collateral received, numerator (encumbered assets), and denominator (total assets and collateral received that can be encumbered), between December 2022 and December 2023

Figure 21: Evolution of the weighted average asset encumbrance ratio by country, between December 2022 and December 2023

Figure 22: Evolution of the share of the main types of asset encumbrance and total volume of encumbrance, from December 2017 to December 2023

Figure 23a: Non-encumbered assets amount and share of total assets from December 2022 to December 2023

Figure 23b: Non-encumbered assets amount and share of total assets by country as at December 2023

Figure 23c: Non-encumbered assets amount and share of total assets by country as at December 2023

Figure 24: EU/EEA average fair value to carrying amount of non-encumbered debt securities from December 2022 to December 2023

Figure 25: Funding composition 2023 to 2026

Figure 26: Public sector sources of funding

Figure 27: Growth expectations for selected liability classes

Figure 28: Net issuance volume by country and year (short and long-term debt securities)

Figure 29: Unsecured debt instruments – stock volume

Figure 30: Unsecured debt issuance and maturing volume

Figure 31: Secured debt issuance and maturing volume

Figure 32: EU/EEA banks’ debt and capital instrument issuances, YtD as of 15 June of the years 2022 to 2024 *

Figure 33: LCR and NSFR, actual and forecasts

Figure 34: Capital ratios (transitional definitions) and leverage ratio

Figure 35: CET1 requirements and Pillar 2 Guidance vs CET1 ratio (transitional definition) *

Figure 36: CET1 requirements and Pillar 2 Guidance vs CET1 ratio (transitional definition) by country

Figure 37: Dividends and share buy-backs (in EUR bn, lhs) and payout ratio (rhs)

Figure 38a: Credit risk – share of different components in exposure amounts over time

Figure 38b: Credit risk – share of different components in RWAs over time

Figure 39a: IRB parameter PD for selected exposures classes

Figure 39b: IRB parameter LGD for selected exposures classes

Figure 40: RoE and contribution of the main P&L items to the RoE, comparison between December 2022 and December 2023

Figure 41: Evolution of EU/EEA RoA, between December 2022 and December 2023

Figure 42: Year-on-year variation of NII as a percentage of equity, between December 2022 and December 2023

Figure 43: Year-on-year variation of net interest margin by country

Figure 44: Evolution of cost base on equity, between December 2022 and December 2023

Figure 45a: Banks’ level of engagement with CBDCs for what responding banks define as their home market

Figure 45b: CBDCs impact as expected by banks for what responding banks define as their home market

Figure 46a: Interest rates on deposits by segment

Figure 46b: Interest rates on loans by segment

Figure 47: Actual and forecasted spread between client loans and client deposits (households and NFCs)

Figure 48a: Actual and forecasted interest rates for secured debt instruments

Figure 48b: Actual and forecasted interest rates for unsecured debt instruments

Figure 49: Main drivers of operational risk as seen by banks *

Figure 50: Number of successful cyber-attacks resulting in ‘major ICT-related incidents’ in the last semi-annual assessment period *

Figure 51a: Financial crime risks in 2023 (cumulative numbers per month)

Figure 51b: Financial crime risks in 2023 (Where do material weaknesses occur?)

Figure 51c: Financial crime risks in 2023 (What are the top 5 types of measures?)

Figure 51d: Financial crime risks in 2023 (What are the top 5 sectors where material weaknesses are identified?)

Figure 52: Green Street pan-European commercial property price index *

Figure 52: Green Street pan-European commercial property price index *

Figure 53a: Year-on-year change in commercial property prices for selected countries *

Figure 53b: Trends in office vs retail prices for selected countries *

Figure 54: Share prices of selected European REITs *

Figure 55: EU/EEA banks’ exposure to loans collateralised by CREs – December 2014 to December 2023

Figure 56: Loans collateralised by CREs and share of loans collateralised by CREs to total NFC and household loans by country – December 2019 and December 2023 *

Figure 57: Loan collateralised by CREs towards the country of domicile of counterparty – December 2023

Figure 58: Loan-to-value ratios of loans collateralised by CREs by country and total CRE loans – December 2023

Figure 59: Share of outstanding CRE loans repricing in less than 12 months

Figure 60: Trends in NPL and IFRS 9 stage 2 allocation volumes and ratio of CRE exposures – December 2014 to December 2023 *

Figure 61: NPL and IFRS 9 stage 2 allocation ratio by country for CRE exposures – December 2022 and December 2023

Figure 62a: Trend NPL inflows/outflows of EU/EEA banks related to CRE exposures