Non-performing loan (NPL) levels in Europe may have fallen significantly since their peak in 2012/13, but in a number of countries, especially in southern Europe, they remain high. This could still pose a problem for achieving greater financial integration within the eurozone.
The EU’s fourth progress report on NPLs, published in mid-2019, showed that the gross NPL ratio for all EU banks had fallen to 3.3% (as of the third quarter of 2018), down from more than 7% at its peak.
