Coverage ratio of non-performing loans Europe 2025| ��ƽ��

Coverage ratio of non-performing loans and advances (NPL) in Europe as of March 2025, by country

Characteristic	Coverage ratio of NPLs
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Release date

August 2025

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Region

Europe, EU

Survey time period

March 2025

Supplementary notes

The source added the following information; "Gross carrying amounts, other than trading exposures. Individual country data includes subsidiaries, which are excluded from EU aggregate. For example, at country level the subsidiary in country X of a bank domiciled in country Y is included both in data for countries X and Y (for the latter as part of the consolidated entity). In the EU aggregate, only the consolidated entity domiciled in country Y is considered. The sample of banks is unbalanced and reviewed annually."

Citation formats

As of March 2025, the Romanian banking sector had the highest coverage ratio of non-performing loans and advances (NPL) in Europe at percent. The non-performing loan coverage ratio looks at a banks ability to absorb future losses. Banks understand not every loan that they lend will be paid in full, so by predicting the rate of non-performing loans, banks can be prepared to cover these future losses. The higher the coverage ratio, the better prepared a countries banks are for such an outcome.

How have evolved NPLs in different European countries?

In some countries, such as the United Kingdom, approximately *** percent of loans were non-performing (NPL), whereas less economically stable countries such as Greece saw NPL’s reach worryingly high levels between 2011 and 2019. Nevertheless, the southern-European country has reduced the size of its NPLs fast during the past years.

Italy's coverage ratio remains stable

The coverage ratio of NPLs in Italy has remained relatively stable during the past years. That stability was reached after the coverage ratio grew at a fast pace between 2015 and 2018. When looking at the coverage ratio of non-performing mortgages, the ranking looked slightly different, with Poland being at the top.