Eurozone banks are still piling up new bad loans
Eurozone banks are still seeing a "high" number of loans go unpaid and borrowers declare default despite years of economic growth, the European Central Bank's top supervisor Andrea Enria said on Friday.
But Enria also praised the sector's "ambitious" plans to reduce a mountain of nonperforming loans (NPLs) inherited from the last recession.
They are particularly high still in countries such as Italy, Greece and Portugal.
Enria also urged lenders to step up their efforts and stem a flow of newly soured credit and customer defaults.
"It seems that inflows of new NPLs are still on the high side - not least when you consider where we are in the business cycle," Enria said.
"It also seems that some banks with high NPLs are still reporting increasing default rates. We find this somewhat worrying, and we urge banks to stem this inflow by rethinking their...