Experts anticipate the deterioration of banks’ asset quality and loan books as high interest rates and geopolitical tensions persist, and expect a rise in non-performing and impaired loans.
But so far, Europe’s banking sector has proved remarkably resilient, having withstood the macroeconomic headwinds of the last few years arising from higher inflation and the accompanying rise in interest rates, low real GDP growth, the Russian invasion of Ukraine and the long-term effects of the Covid-19 pandemic.
