Credit risk data from the European Banking Authority's (EBA) recent transparency exercise provides useful context for why troubled Italian lender Banca Carige is teetering on the brink of failure.
The Italian lender had €13.9 billion ($15.9 billion) of credit risk-weighted assets at end-June 2018, 93% of its total RWAs. Of these credit RWAs, 20% were consumed by credit exposures in default. These defaulted exposures accounted for 9% of its total credit exposures in value.
The average share of