SAN - Eurozone banks are starting to see credit quality falter ECB official says

Sean Gallup/Getty Images News European Central Bank Vice President Luis de Guindos says eurozone banks are seeing some deterioration in credit quality and that's likely to worsen as governments remove fiscal support. "There are already some early signs of weakening credit quality, for example the share of loans reported as subject to heightened credit risk has risen significantly and asset quality is likely to deteriorate once support measures are phased out," de Guindos said in a speech to the Frankfurt Euro Summit. "As the coronavirus shock affected the euro area economy very unevenly, credit risk metrics have varied widely across sectors." While overall, the outlook is brightening for banks as the economy rebounds, it's bound to be a bumpy recovery. The weakening is most apparent in sectors that were hit hardest by the pandemic, such as services. By contrast, loan performance problems in manufacturing are less prevalent. And even though,

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Eurozone banks are starting to see credit quality falter, ECB official says