European banks sitting on €1tn mountain of bad debt, survey finds

Analysis of 105 banks by European Banking Authority raises concerns over 'drag on profitability' from non-performing loans

European banks are sitting on bad debts of a1tn - the equivalent to the GDP of Spain - which is holding back their profitability and ability to lend to high street customers and businesses.

According to a detailed analysis of 105 banks across 21 countries in the European Union conducted by the European Banking Authority (EBA), the experience of Europe's banks to troubled customers is worse than that of their counterparts in the US.