EBA points to a rising share of loans that show a significant increase in credit risk Dettagli The European Banking Authority (EBA) published its Risk Dashboard for the last quarter of 2020. The data show a rise in capital ratios, a contraction of the NPL ratio and a return on equity (RoE) significantly below banks’ cost of equity. Besides asset quality and profitability, operational risks remain a key concern going forward. Capital ratios continued to improve in Q4, driven by an increase in capital, which more than offset a slight rise in risk weighted assets. The CET1 ratio reached a new all-time high of 15.5% on a fully loaded basis, up by 40bps QoQ. The leverage ratio (on a fully loaded basis) increased to 5.8% from 5.5% in the previous quarter. This was supported by growing capital, but also a decline in total assets.