The EU banking sector entered the post-Covid-19 economic crisis better capitalised than it was during the 2008 financial crisis. However, the persistence of the crisis in 2021 would profoundly affect the solvency of banks and the banking prudential framework in place at the European level may not be sufficient. These are the main conclusions of a study published on Tuesday 16 June by the EconPol Europe network of economic policy research institutes.
European banks could absorb the shock if...