SUMMARY We analyse the determinants of coverage ratios and their components [non-performing loans (NPLs) and loss loan reserves] in a large sample of European banks. We find that bank-specific factors, particularly credit risk variables (including forward-looking indicators) and capitalization, matter the most. Coverage ratios adjust insufficiently as asset quality deteriorates, except in high-NPL banks. Capitalization has a positive effect on coverage ratio, pointing to a complementarity between the two buffers. At the country level, specific macroprudential levers and developing NPL secondary markets enhance coverage ratios. Our findings emphasize the importance of micro oversight and call for more stringent macro policies in high-NPL countries.

中文翻译：

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覆盖您的资产：欧洲的不良贷款和覆盖率

总结 我们分析了大量欧洲银行样本中覆盖率及其组成部分[不良贷款 (NPL) 和损失贷款准备金] 的决定因素。我们发现银行特定因素，特别是信用风险变量（包括前瞻性指标）和资本化，最重要。随着资产质量恶化，覆盖率调整不足，不良贷款率高的银行除外。资本化对覆盖率有积极影响，表明两个缓冲区之间存在互补性。在国家层面，具体的宏观审慎杠杆和发展中的不良贷款二级市场提高了覆盖率。我们的研究结果强调了微观监督的重要性，并呼吁对高不良贷款国家采取更严格的宏观政策。