• Facebook
  • LinkedIn
  • Twitter

maltawinds.comLogo

The Economy's Voice

Menu

Skip to content
  • Home
  • About
  • Local News
  • International News
  • Opinion
  • Dione on Wednesdays
  • André on Fridays
  • Demia on Sundays
  • Trump vows emergency declaration over wall, agrees to shutdown-averting bill
  • Borgo Lifestyle Finance plc Company Announcement

Banking in Europe: EBF publishes 2018 Facts & Figures

Posted by Vento on 20th September 2018 in International News
Facebook
Facebook
RSS
Follow by Email
Google+
http://maltawinds.com/2018/09/20/banking-in-europe-ebf-publishes-2018-facts-figures/

The European Banking Federation has published Banking in Europe; the 2018 Facts & Figures, its annual update on the banking sector in Europe.

The publication shows that the contraction in the European banking sector, both as measured in terms of staff numbers and branches, continued in 2017 as the industry continued to improve efficiency while enhancing its profitability.

The special theme section in this year’s edition of Banking in Europe is dedicated to non-performing loans (NPLs). EU NPL stocks declined considerably in recent years due to enhanced loan selling activities of banks. In fact, as of 2017, the ratio for the EU stood at 3.7 percent, down from an EU-wide peak of 7.5 percent in 2012 and just below the world average of 3.74%, showing that NPLs are no longer a specific European problem.

A close look to the composition of total NPLs in the EU shows that only a fraction is problematic. The total amount of cumulative NPLs was reduced by some 25% during 2016 and 2017 to around €800 billion. The real problem to tackle is a portion between €150 billion and €200 billion, representing no more than a quarter of the total.

“European banks are clearly making significant progress on NPLs. Although there is still room for improvement, it should also be clear that the problem no longer is as big as it used to be,” said Gonzalo Gasos, Head of Banking Supervision at the EBF. “The question we now face is whether we really need additional European regulation that forces banks to undersell NPLs and that would leave bank clients worse off.”

Banks continue to scale back brand networks

The Banking in Europe overview shows that banks continue to scale back their physical presence across Europe as having a widespread branch network become less important. Clients increasingly interact with banks through digital channels instead of branches.

The total number of credit institutions in the European Union fell by 5% in 2017 to 6.250 institutions, down by 2.275 since the contraction began in 2009. Last year’s decline was led by Germany, Italy, Hungary and Austria. The number of credit institutions increased in the United Kingdom and Sweden last year.

The number of bank branches in the EU last year declined to approximately 183,000, showing that about 5,900 branches were closed last year, down 3.1 percent. Compared to 2007 the total number of bank branches has declined 21%, or by almost 50,000, reflecting the rapid uptake of online and mobile banking services in recent years. In 2017 more than half of all people in the EU, 51 percent, used Internet banking, compared to 29 percent in 2008.

The number of people working for credit institutions in the EU fell to the lowest level since the ECB started measuring this in 1997 and stood at approximately 2.74 million people at the end of 2017, compared to 2.78 million a year earlier. This compares to 3.13 million in 2009. About two-thirds of all bank staff in the EU is employed by a bank headquartered in one of the five largest EU member states.

The total deposits from businesses and households grew by 2.5 percent to €16.3 billion, with €12.1 billion in deposits in the euro area. Deposits from households rose 2.9 percent compared to a year earlier while business deposits increased 6.7 percent.

The value of loans to EU households recovered last year and increased 2.5 percent to €7.8 trillion, led higher by loans to households in the euro area, which grew for a third consecutive year. The value of loans to households in the eurozone has risen by some €500 billion since 2014.

Posted in International News | Tagged banking, European, european economy, sector

About the Author

Vento

Related Posts

HSBC ushers in 2019 with great offers and discounts→

EIT announces two winning innovation communities in manufacturing and urban mobility→

Volume of retail trade up by 0.3% in euro area→

Banking consolidation in Europe is ‘inevitable,’ UBS chief Ermotti says→

advertisement
  • Posts
  • Comments
  • Tag Cloud
  • Trump vows emergency declaration over wall, agrees to shutdown-averting bill

    15th February 2019 / Vento
  • Borgo Lifestyle Finance plc Company Announcement

    15th February 2019 / Vento
  • The love for books

    15th February 2019 / Andre Carbonaro
  • Spain’s Socialist leader calls early elections for April 28

    15th February 2019 / Vento
  • The EU has an important election coming in May. Here’s what you need to know

    15th February 2019 / Vento
  • Joseph on Delia ma jikkonvinci lil hadd!Ma nafx ghalfejn dil mibgheda…
  • Jo Meli on Joseph Muscat huwa l-htija ta’ Lawrence GonziNAQBEL
  • Joseph on Farsons celebrates 90th anniversary, inaugurates new officesBeing Farsons Bondholders, why are…
  • Frank Andersen on Ix-Xufier tal-Ministru, Xarabanks u kif fl-ahhar ser…heard that geologist Dr Peter…
  • Frank Andersen on Ix-Xufier tal-Ministru, Xarabanks u kif fl-ahhar ser…I heard that geologist Dr…
banking Bitcoin blockchain BOV brexit business China cryptocurrencies cryptocurrency currency dollar Donald Trump ECB economy environment EU EU member states Euro euro area Europe European Commission European Parliament European Union Eurostat eurozone Facebook finance France GDP Germany global economy investment Italy Malta Malta Politics maritime market politics Russia technology Theresa May UK United States US USA

News Calendar

September 2018
M T W T F S S
« Aug   Oct »
 12
3456789
10111213141516
17181920212223
24252627282930
Footer logo
  • Facebook
  • LinkedIn
  • Twitter
 
 
 
 

Copyright © 2016 MaltaWinds.com

Menu

  • About
  • Home