Andrea Enria, the head of banking supervision activities of the European Central Bank, said on Thursday that the asset quality of some euro area banks is deteriorating, and a real estate bubble may form in some countries.
He told the Economic Affairs Committee of the European Parliament: “Even though the data (of bad assets) still looks good, the quality of assets seems to be deteriorating.”
“We have also seen loopholes in residential real estate in some countries.”
He added that the bank’s bad debt forecasts may be too optimistic and the industry should be cautious about provisions.
article The European Central Bank evokes a real estate “bubble” First appeared in Zimo News.