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

A risk dashboard for the Q4/2021 was published by the European Banking Authority (EBA) whereas approximately 80% of the banks in the EU/EEA sector are included in the Risk Dashboard.
There is a special feature describing the potential impact of the Russian invasion of Ukraine on the EU/EEA banking sector.
According to the EBA's preliminary assessment:
- The first-round risks associated with the Russian invasion of Ukraine are not a fundamental threat to the stability of the EU banking system. However, second-round effects may be more consequential.
- The capital and liquidity ratios of EU banks remained strong.
- Profitability stabilized at higher levels than in the pre-pandemic period.
- The non-performing loan ratio declined as asset quality improved.
- Risks associated with cyber and information and communication technology remain high.
Published on 13.07.2022
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