Early signs of European commercial property loans under pressure, says watchdog

Commercial property projects have turned down significantly across Europe

Commercial property loans are under pressure, the European Banking Authority said.

Banks in the European Union hold record high levels of capital backed by improving levels of liquidity, but there are early signs that loans, such as those linked to commercial property, have come under pressure, the EU's banking watchdog has said. 

The European Banking Authority, EBA, said in its "risk dashboard" for the final quarter of 2023 that credit quality indicators point to some potential deterioration, albeit from still very low levels.