Banks and credit risk The economic recovery is being reflected in the indicators of credit quality, which continue to show an improvement. In 2016 the flow of new non-performing loans (NPLs) reached its lowest level since 2008; from the end of 2015 the stock of outstanding NPLs also began to diminish, albeit gradually.
With the implementation of the BRRD, under the Single Resolution Mechanism for banking crises, a Single Resolution Fund will be established, to which euro-area banks will progressively transfer resources to finance resolution procedures.