Banks Are Underestimating Auto Sector Loan Losses, ECB Warns
Euro-zone banks appear to be understating potential loan losses in the automotive sector, a senior European Central Bank supervisory official warned on Thursday.
Sharon Donnery, who joined the ECB's supervisory board in January, told a gathering in Washington DC that banks' provisions for the commercial real estate and automotive industries were areas that 'warrant particular attention from supervisors,' in a world where loan books appear generally healthy.
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