The European Banking Authority (EBA) has published a periodical update of its risk dashboard. The EBA risk dashboard is part of the regular risk assessment conducted by the EBA and complements the semi-annual risk assessment report. It is based on Q4 2014 data and takes into consideration the evolution of a set of key risk indicators from 55 EU banks that the EBA has been collecting on a quarterly basis since 2009.

The EBA’s risk dashboard notes that:

  • EU banks’ capital remained strong in Q4 2014 compared to the last quarter;
  • the quality of banks’ loan portfolios is nearly unchanged;
  • profitability shows a positive trend on a year over year comparison, but return on equity remains subdued and materially below the average cost of equity; and
  • the loan-to-deposit ratio decreased in Q4 2014.

View EBA updates its risk dashboard for EU banking sector, 3 June 2015