Banking Risk July 6, 2022Banks across the globe saw a rise in increased credit risk exposures (stage 2 assets) and in expected credit losses as the COVID-19 pandemic wore on. This uptick in stage 2 proportions indicates a perceived drop in borrower resilience, according to a recent report by the European Banking Authority. And as pandemic-related measures such as moratoria on loan repayments expire, asset quality is likely to be affected. We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com To read the article, see “IFRS 9 models in financial instruments and impairment regulations: The new reality and lessons learned,” May 23, 2022.