European banking sector resilient despite complex geopolitical landscape says Scope Ratings
The cost of risk could rise by 10 basis points in 2026 compared with 2025, reflecting increased geopolitical risks and macroeconomic uncertainty, although provisions will remain low overall. Scope Ratings Analysis European banks are profitable, well-capitalised and have sound balance sheets. Our outlook is positive, although we are closely monitoring the knock-on effects of the war in the Middle East, the risk of stagflation, merger and acquisition activity, interest rate…
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