Banks Outlook 2021

This is our comprehensive outlook for European banks in 2021. The Covid-19 crisis will make its impact felt even more strongly next year and the banking sector has numerous challenges to overcome. 

We look at loan demand, as businesses struggle to survive.

The clouded outlook for loan volumes is complemented by an ever-increasing pressure on margins, as eurozone banks continue to suffer from the negative rates environment in 2021.

A sharp increase in non-performing loans is a question of 'when, not if', but will hit some countries more than others. We examine what's at stake.

Weak demand and digesting losses may drive banks into each other’s arms. So what are the chances of more consolidation in the industry?

Covid-19 has sharply reduced bank bond issuance this year. What are the prospects for 2021? We have the answers.

Regulators have responded strongly to the Covid-19 pandemic in an effort to mitigate the impact of the crisis on households, corporates and banks. To what extent banks will be able to rely on these temporary provisions in 2021 pretty much depends on how the coronavirus situation evolves.

And our report also looks at how the coronavirus pandemic is underscoring and reinforcing the importance of sustainability. We look at what steps are being taken towards climate neutrality.