Pandemic's impact on Europe’s banks won’t be clear until 2021

The impact on financial institutions in Europe due to the pandemic probably won’t be apparent until next year, a senior European banking official told CNBC in a recent report.

Elke König, chair of the Single Resolution Board of the Single Resolution Mechanism, considered to be a key supervisor of the restructuring and resolution body of failing banks in the EU, told CNBC that it could be spring before the real impact of non-performing loans was apparent.

König said the organization has instructed banks to be ready to discuss what hey have done in regard to risk management. She also told CNBC that she was “mildly optimistic” that the number of bank failures in the spring wouldn’t be astronomical as many EU banks were taking steps to avoid collapse.