The pandemic could trigger a surge in bad debts for European banks over the next three years, says a new report from consultancy Oliver Wyman. Loan losses could amount to €400bn, according to the firm’s expected scenario in which most countries avoid a second lockdown. Should there be a second wave, then Europe’s banks may have to brace for €800bn in credit losses – or 10% of their total lending. The report further states that the situation could have been worse: government support schemes have likely shielded the industry from about a third of corporate defaults.