The financial system in Europe is bigger now, relative to its GDP, than before the crisis. It is also more concentrated and non-banks play a bigger role in it, the European Central Bank says.

While capital ratios have increased, non-performing loans remain high in key member states. This is hampering recovery in the region’s periphery, limiting credit growth and putting financial stability in jeopardy, says the ECB’s report on financial structures, released today (October 23).

The analysis