The PwC NPL Barometer is an analysis of the level of non-performing loans (NPLs) and associated provisions across key Western European financial markets.
The analysis shows the extent to which NPLs have increased as a result of the financial crisis, with consumers and corporates struggling to repay debts.
The analysis is based upon publicly available financial data, and provides coverage of approximately 75% of banks within each of the following regions:
NPLs of the countries in our scope stood at over €160bn in 2007 increasing to over €500bn in 2010. Prior to the financial crisis, NPL’s in December 2007 represented 2% of total lending with provision coverage being 84% by June 2010 NPLs stood at 5% of total lending with a provision coverage ratio of 50%.
This implies that even though NPLs have more than doubled since 2007 provisions have not increased at the same rate.