ECB's Draghi Says NPL Problem Is Not Yet Solved

The video discusses the improvement in capital quality of euro area banks, highlighting the increase in the high loss absorbing component CT1. It addresses specific weaknesses, particularly focusing on non-performing loans (NPLs) and their impact on banks' lending capabilities. The transcript emphasizes the need for a joint effort by banks, supervisors, regulators, and national authorities to manage and reduce NPL levels effectively.

What has been the trend in the quality of capital for euro area banks since 2015?

What is the current issue that needs to be addressed regarding non-performing loans (NPLs) in euro area banks?

What is the impact of high levels of NPLs on banks' lending practices according to the ECB analysis?

How have the NPL levels changed for significant institutions from early 2015 to now?

What joint efforts are suggested to address the issue of high NPLs in banks?