by Mish

The average non-performing rate in the EU is 5.1%, down from 5.7% in 2015. For comparison purposed, a World Bank Report has the US at 1.3%, Japan at 1.5%, and Canada at 0.6%

In contrast, Greece and Cyprus have NPL ratios of 46% and 45% respectively. Bulgaria, Croatia, Hungary, Ireland, Italy, Portugal, Slovenia, and Romania all have NPL ratios between 10% and 20%.

Non-Performing Loans

Notes

  • I am unsure why the graphs sometimes use different country codes than appears in the first column. Where different, I show both symbols. The list of country codes is shown below.
  • Forb ratio stands for forbearance ratio.
  • Cov ratio stands for coverage ratio: (Loans – Reserve balance)/Total amount of non-performing loans. It’s a measure of how prepared a bank is for losses.

RECOMMENDED ARTICLES

Country Codes

Image placeholder title

Italy, Greece, Spain, Portugal, and Ireland have a combined €606 billion in non-performing loans.

Clearly, the EU banking system is quite troubled.

Mike “Mish” Shedlock

EU Deposit Insurance, a Bank Crisis in Italy and Greece, and the Coming Ban on Cash

Last week we investigated nonperforming EU loans and an EU proposal to freeze accounts if a run on a bank starts.

It’s Your Money But You Can’t Have It: EU Proposes Account Freezes to Halt Bank Runs

If there is a run on the bank, any bank in the EU, you better be among the first to get your money out.

Ease in Doing and Starting a Business: US and UK vs. Europe, Rest of World

A couple of spreadsheets can easily explain why QE and negative interest rates cannot possibly fix what ails the EU. The same spreadsheets show why the UK was smart to Brexit.

Under Political Pressure, ECB Ponders Dumping Rules Covering Bad Loans

Under political pressure, the ECB ponders dumping rules on tackling close to $1 trillion in nonperforming loans.

Household Debt Hits Record High $13.29 Trillion Led by Mortgages, Student Loans

A New York Fed report shows household debt hit a new record high of $13.29 trillion in the second quarter.

Over 300,000 Germans Protest EU Trade Deals With US and Canada

Hundreds of thousands of German citizens have taken to the streets in a massive protest against the proposed EU trade agreement with the US and Canada.

Global Pension Gap Expected to Hit $400 Trillion: US Leads the Way

The global pension gap of 8 nations is $70 trillion. The US alone is $38 trillion. By 2050 the total gap will hit $400T.

Tax Bill Adds $1 Trillion to Deficit (Without Cutting Taxes for Most)

Nonpartisan analysis, from several places, shows the Senate tax bill will all $1 trillion to the deficit. What's next?

Student Loan Debt Climbs to Record High $1.4 Trillion in 2019

Want to know what's holding back housing and family formation? Look no further than student loans.