The European Banking Authority has published the first risk dashboard for 2014 summarising the main risks and vulnerabilities in the banking sector in the European Union, based on the evolution of Key Risk Indicators (KRI) from 55 banks across the EU in the fourth quarter of 2013.

Data in this edition of the EBA dashboard illustrates that EU banks' capital positions decreased as a result of cleaning up of balance sheets and taking on legal charges. This decrease of capital positions was outpaced by declining Risk Weighted Assets (RWAs), hence contributing to higher capital ratios. The quality of banks' loan portfolios deteriorated further, highlighting the importance of thorough assessment of asset quality, accompanied by consistent transparency.