It will be a difficult year, 2021, for European banks (Eurozone, Great Britain, Nordic area and Central and Eastern Europe), which will have to deal with an operating environment characterised by slow economic recovery, growing problems on loans and weaker profitability prospects.
This is what Moody’s experts explain in a report published yesterday, in which they confirmed a negative outlook on the sector.
“Our decision,” explains analyst Carola Schuler, “reflects our expectations that banks’ credit fundamentals will weaken as a result of the coronavirus pandemic. During these uncertain times, a strong capital and liquidity base will be crucial strengths for banks and a supporting factor will come from accommodative monetary policies”.