CNBC reports that according to a senior European banking official, the fallout from the coronavirus pandemic on Europe’s financial institutions will become more apparent in the coming months.

Elke König, chair of the Single Resolution Board of the Single Resolution Mechanism, said she expected a rise in the number of non-performing loans (NPLs) in the region, which in turn would hit bank balance sheets.

When these loans could peak, however, was the ”$60,000 dollar question,” König said.

“I would have thought in the beginning (of the pandemic) in spring that we might see the first real impact on balance sheets in the third or fourth quarter of this year,” she told CNBC.

However, König highlighted that some government support implemented at the start of the coronavirus crisis was starting to expire, and as such, further damage to Europe’s banking sector could become apparent later in 2021.