Economy

Boss EBA calls for European support for banks Financial

In an interview with Reuters news agency, the chief of the regulator suggests that banks use the European recovery fund of 500 billion euros, as recently proposed by France and Germany. “It would make sense to have a European approach to support banks,” said Campa. “The EU recovery fund could play a role here.”

According to the EBA, banks in Europe are dealing with a large amount of loans that may never be repaid, as many companies, including individuals, are in trouble due to the corona crisis. “I expect a wave of bad loans in the next two to three quarters. How much exactly is difficult to say,” said Campa.

Many large banks recently released their quarterly figures. In addition, billions of euros were put in the sling jar by the financial groups for exactly this problem. Dutch ING saw its quarterly profit fall sharply as a result. ABN AMRO even lost hundreds of millions of euros in the first quarter as a result of the corona crisis. Nevertheless, ABN AMRO says it was still in good shape at its core. In southern European countries such as Italy and Spain, banks generally seem more vulnerable.

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