The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Credit deterioration across Europe's corporate sector

Banks across Europe are bracing themselves for a continued deterioration in their corporate loan portfolios as Europe's small to mid-size continue to see credit deterioration in the latter half of 2003.


Despite the first semblance of a recovery seen across several national markets, domestic bad debts and loan loss provisions are set to continue rising through 2003 and 2004. And while 2002 saw corporate credit deterioration limited to specific sectors - most notably telecommunications and energy - the later months of 2003 will see a general deterioration across the board in Europe's corporate sector.


Europe's banks, however, are in a secure position, at least according to Arnaud de Toytot, part of S&Ps European financial institutions ratings group: "This scenario of a moderate deterioration in the quality of domestic corporate loan books is already largely factored into our existing ratings on European banks and is counterbalanced by the banks' generally sound earnings and capital strength."


Regional trends within Europe have also developed. While German, Portuguese and Dutch banks face the prospect of continuing weak economies, banks in Spain, Ireland and the UK are expected to fare better with their corporate loan books on the back of stronger economies.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree