This Great Graphic comes from a post on Vox by Nadege Jassaud and Heiko Hesse. It compares the non-performing loans as a percentage of total EU loans for a select number of countries. The read line is was the average NPL in December 2007 and the blue bar is the average at the end of H1 12.
Clearly, most countries' banks have experienced an increase in non-performing loans to EU borrowers. Yet, the NPLs in for the Sweden, Norway and the US appear inconsequential. Of course, the key to the market impact may be the combination of non-performing loans and the capital buffers established. All else being equal, one would assume a rise in NPL needs to be offset by an increase in capital reserves. This is being achieved through retained earnings, new bond issuance, and the sales of assets.
Great Graphic: Non-Performing Loans in the EU
Reviewed by Marc Chandler
on
April 15, 2013
Rating:
Reviewed by Marc Chandler
on
April 15, 2013
Rating:
