As seen in the recent communication published by the European Commission in December 2020, the set-up of AMCs (either at national or at European level) is a policy proposal that is now favored by the European authorities and could lead to a swift cleanup of banks’ loan books. 4.
The main challenges facing banks in Europe Euro area banks face a number of challenges; new due to Covid-19 outbreak and existing ones: First, banks are tied-up to macroeconomic and monetary policy developments. Despite the projected recovery of the European economy in 2021, risks to the projections remain elevated.