25 April | Euro

ECB's Donnery: eurozone banks are underestimating potential credit losses in auto sector

ECB's Donnery: eurozone banks are underestimating potential credit losses in auto sector

On Thursday, European Central Bank (ECB) official Sharon Donnery warned that eurozone financial institutions are not fully assessing potential credit losses in the automotive and commercial real estate sectors.

As a member of the ECB Supervisory Board noted, the reserves of financial institutions in these areas require closer attention. However, loan portfolios generally look robust.

This month, the EU auto sector has seen a sharp decline in share prices due to US trade policy, Bloomberg experts emphasize. Donnery did not cite this as a direct reason for her caution, but stressed global economic uncertainty.

Banks' reserves may partially cover risks, especially in the face of heightened global trade tensions, the official said. However, she assured the public that European financial institutions remain resilient, with strong capital and liquidity positions.

Period: 02.12.2025 Expectation: 435 pips
Consider buying AUDUSD amid higher investor appetite and weaker dollar
Today at 11:03 AM 27
Gold sell
Period: 31.12.2025 Expectation: 5000 pips
Selling gold from $4,200 per ounce
Today at 09:58 AM 28
Period: 05.12.2025 Expectation: 4000 pips
Closing gap near $430 to confirm Tesla’s next leg higher
Today at 09:38 AM 19
Brent sell
Period: 30.04.2026 Expectation: 300 pips
Brent crude selloff with $60.0 per barrel in sight
Today at 06:51 AM 19
Period: 02.12.2025 Expectation: 7800 pips
Buying Bitcoin on positive news from US Fed
Today at 06:51 AM 24
Period: 01.12.2025 Expectation: 1800 pips
Silver slides despite technical signals
Yesterday at 10:34 AM 45
Go to forecasts