Between mid-2020 and mid-2021, banks’ capital and liquidity strengthened despite the Covid-19 pandemic, with the average CET1 ratio at 15.5% of total banking assets (up from 14.7% in mid-2020), when applying the full set of Basel III prudential rules, according to the 2021 edition of the industry transparency exercise published by the European Banking Authority (EBA) on Friday 3 December.
In fact, the quality of assets has improved overall. The ratio of non-performing loans (NPLs)...