Banks in a robust position despite the Ukraine war

The banks have defied the consequences of the Ukraine war with “strong equity and liquidity positions, higher profitability and a continuous improvement in asset quality,” said ECB Chief Banking Supervisor Andrea Enria on Wednesday when presenting the results of the annual bank audit.

Overall, the banks are in a robust position, also because of higher interest rates. Only one institution failed to meet the ECB’s capital requirements and recommendations in the previous year. The year before, there were still six banks.

However, there are also deficiencies that need to be addressed. Enria mentioned risk controls, corporate governance and the threat of cyberattacks. The ECB has been supervising large banks in the eurozone since 2014. The 113 banks in Austria include Erste Group and Raiffeisen Bank International.