Moody's: 2017 Stable outlook on European banking sector reflects more resilient credit fundamentals

The US-based ratings agency, Moody’s Investor Service, published its latest report on the European banking system, noting that the outlook remains stable, although persistent profitability pressures and asset quality risk in selected countries pose challenges in 2017.

Carola Schuler, Managing Director at Moody's, noted, "Despite still large stockpiles of non-performing loans in Italy, Portugal and Greece, banks' asset quality is stable or improving in most European countries. Levels of nonperforming loans, for example, have significantly improved in Ireland and Spain, supported by low interest rates, problem-loan sales and write-offs."