Scope Ratings | European banks have proven resilient in the face of Covid-19. There has been no banking crisis and no bank has come close to resolution. Supportive fiscal, monetary and supervisory policies have offset credit, funding and solvency risks. Most banks entered the crisis with healthy balance sheets. Balancing the stabilisation effect of the expected rebound against asset-quality deterioration, and factoring in business-model adjustments will underpin our rating approach to the EU banking sector next year.