ECB Says Banks Use ‘Flawed Models’ For Property Debt: The Brink

Welcome to The Brink. We’re Laura Noonan and Neil Callanan in London, where we have been looking at the ECB’s concerns over how banks are assessing property loans. We also have the latest on China’s steel slump and Ireland’s biggest shopping mall. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @LauraNoonanX

Bad Modelling

The European Central Bank has warned that some lenders rely too much on flawed models put forward by their commercial real estate borrowers, increasing banks’ vulnerability to a downturn.

“These models can have significant shortcomings, especially when dealing with ...