European Central Bank interest rate hikes are in their final stretch, ECB Vice President Luis de Guindos told an Italian newspaper, while warning that higher borrowing costs could put stress on banks' asset quality, even if indicators so far remain healthy.
The ECB has raised rates by a combined 375 basis points since last July and has promised further increases, but at a more measured pace of 25 basis point increments, after oversized moves in the early part of its tightening campaign.
These rate hikes improve banks' lending margins but could also make it more difficult for some borrowers to repay their debts, lifting the portion of non-performing loans or NPLs. "The combination of a slowing economy and the interest rate hikes will bring a rise in the cost of funding for banks and possibly an increase in non-performing loans."
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Audit finds holes in ECB's management of bank credit riskEuropean Central Bank supervisors are often too lenient with banks in how they manage credit risk, especially in the case of the worst performers, the European Court of Auditors (ECA) said on Friday in a report that highlighted a number of shortcomings.
Lire la suite »
ECB’s Nagel: Latest rate hike won't be the lastSpeaking on the sidelines of a Group of Seven (G7) meeting in Japan, European Central Bank (ECB) policymaker and Bundesbank Chief Joachim said on Frid
Lire la suite »
Inflation Expectations of Eurozone Consumers ‘Increased Significantly,’ ECB Says – Finance Bitcoin NewsConsumers in the euro area have sharply raised their expectations about inflation in the coming months, the European Central Bank revealed.
Lire la suite »
Climate Change Is Causing Alarming Habitat Loss in European AlpsAccording to researchers, the rapid melting of glaciers due to climate change is causing widespread habitat loss for the invertebrates that live in the cold meltwater rivers of the European Alps Species of invertebrates are expected to be limited to higher, colder habitats in the mountains, which
Lire la suite »
2023 Honda CR-V Makes European Debut Including e:PHEV Option With 51-Mile Range | CarscoopsThe new Euro-spec Honda CR-V is available in self-charging hybrid and plug-in hybrid guise car auto cars
Lire la suite »
European stocks rise as Richemont hits all-time high; UK records slim growthEuropean markets opened higher on Friday despite negative global trading on Thursday.
Lire la suite »