Fundamental problems of European banks

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The IMF has already openly called for reforms in the European banking system. Major problems in the current banking system are the high percentage of NPLs (non-performing loans); low rates on existing loans; not giving the banks as much profit on loans as before; the sharp drop in the number of new business loans relative to the growing population. These factors, as well as the significantly increasing cost on banks for ensuring compliance. In addition to the new technologies, which are displacing traditional banking services such as micro-credits, online payment systems etc.