Stats › Valuation › 2020 provisions
European banks moved 272.7 billion euro of loans into the middle provisioning stage in six months of 2020 while the worst stage shrank
| Stage | Change in the first half of 2020 | Amount |
|---|---|---|
| Stage one, twelve month expected loss | increased by only 0.4% | plus 52.7 billion euro |
| Stage two, lifetime expected loss | rose by 29.1% | plus 272.7 billion euro |
| Stage three, credit impaired | fell by 0.1% | minus 266 million euro |
European Banking Authority thematic note EBA/REP/2021/13, sample of 160 European banks unconsolidated, including 30 subsidiaries. The 29.1 per cent and the 272.7 billion imply an opening stage two balance of about 937.1 billion euro and a closing balance of about 1,209.8 billion, derived here by division and addition.
Stage two rose 29.1 per cent in the first half of 2020. Stage one rose 0.4 per cent and stage three fell 0.1 per cent. Had the twelve month measurement not applied to stage one, the supervisor estimates cost of risk would have roughly doubled.
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