Seasonal factors dragged August collections down 54% month-on-month, a new low since this report started to be published in 2020. A similar pattern has been observed in previous years but to a lesser extent (-35% in 2023, -38% in 2022).

The consolidated non-performing loan (NPL) ratio of EU banks remained stable at a low level of 1.86% in the second quarter despite a rise in total NPLs to EUR 373.4bn, reflecting underlying volume growth.

Germany is facing severe demographic challenges with more acute structural pressures than other advanced economies. Labour-market and pension reforms are essential, but fragmented politics risks eroding the country’s competitiveness.

The US and global economies remain resilient ahead of forthcoming US elections. However, Europe’s economic fragility poses challenges for credit despite support from the easing of interest rates.

Only six of the 20 loans in European CMBS that were scheduled to refinance this year have been repaid or refinanced. Nine were modified and three were extended. Meanwhile, two thirds of the loans still fail bank lenders’ refinancing requirements.

Scope’s new structured finance rated volume grew by 17.4% in the year to June 2024. Monitoring reviews resulted in more upgrades than downgrades over the period, resulting in positive ratings drift for the first time since the third quarter of 2022.

Tuesday, October 15th 2024 - 3:00 PM (CEST)

Türkiye’s restrictive monetary policy continues to drive disinflation, bolster external accounts and replenish official reserves, improving the country’s long-term credit outlook despite persistently high inflation and a wide budget deficit.

UniCredit is pursuing a growth strategy to create a pan-European banking leader, but political resistance to cross-border consolidation remains strong.

Mario Draghi has reminded European policy makers of the critical need to regain economic ground lost to the United States, but the gap is less wide than it first appears, with the challenges of resilience and productivity concentrated in southern Europe.