The European Banking Authority has updated its periodic risk dashboard which summarises the main risks and vulnerabilities in the EU banking sector for Q3 2014.

Amongst other things, the risk dashboard indicates that:

  • EU banks’ capital ratios increased in Q3 2014, with common equity tier 1 ratio reaching 12.1%, the highest level since 2009;
  • the quality of banks’ loan portfolios stabilised, but on a low level. This went in parallel with an increase in total asset and loan volumes;
  • profitability remains volatile and predominantly at low levels throughout the sector; and
  • the loan-to-deposit ratio decreased. The loan-to-deposit ratio is at 109.3% and on an all-time low whereas the share of customer deposit to total liabilities (49.3%) is on an all-time high.

View Risk Dashboard Q4 2014 (data as of Q3 2014), 16 March 2015