ECB Warns Banks Are ‘All Over the Place’ On Bad Loan Preparations

Europe’s top banking supervisor is writing to the region’s biggest lenders to warn that many of them are failing to do enough to prepare for a likely increase in bad loans due to the fallout from the coronavirus pandemic, the Financial Times reported. Andrea Enria, president of the European Central Bank’s supervisory board, said the shortfalls in banks’ preparations for a likely rise in bad loans was one factor to be considered in its decision on whether to allow them to resume dividend payments and share buybacks. Speaking at the Financial Times Global Banking Summit, Mr Enria said some of the 117 banks it oversees were “all over the place” on provisioning for the likely rise in non-performing loans. This was “a concern” for supervisors, he warned. Read more