European banking industry's bad debt provisions are lower than expected, strong employment provides a solid foundation without fear of economic weakness.

According to the Zhtng Cijng app, the provisions for bad loans set aside by large European banks are lower than expected. Despite weak economic growth in Europe, the resilience of the labor market has effectively offset the pressures brought by the soft economy. Bloomberg Intelligence analyst MarYana Vartsaba pointed out that before the release of second quarter financial reports, analysts had expected banks to indicate deteriorating credit quality as economic growth slowed and potential loan defaults were factored into the models.