According to the latest figures from the European Banking Authority, the ratios of non-performing loans in the Spanish, Italian and Portuguese banking systems reached record lows in the second quarter of 2022. It also appears that their cost of risk remains relatively low following the sharp increase in 2020. However, the cost of risk for Southern European banks is likely to increase again in the coming quarters against a backdrop of a slowdown in economic activity linked to high inflation, rising interest rates and higher energy prices.
