Risk dashboard for the fourth quarter of 2021

EBA Risk Dashboard indicates limited direct impact on EU banks from the Russian invasion of Ukraine but also points to clear medium-term risks

EBA published its Risk Dashboard for the fourth quarter of 2021 on 01. April 2022. EBA Risk Dashboard shows limited direct impact of Russian invasion of Ukraine on EU banks. The risks arising from the Russian invasion of Ukraine do not pose a fundamental threat to the stability of the EU banking system, but medium-term risks are highlighted. Other findings of the Risk Dashboard include:

EU banks' capital and liquidity ratios remained strong.
Profitability stabilized at a higher level than before the pandemic
Nonperforming loan (NPL) ratios declined as asset quality continued to improve
Cyber and information and communications technology (ICT)-related risks remain high