A Strategy for Resolving Europe's Problem Loans

A Strategy for Resolving Europe's Problem Loans

Europe's banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addr...

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Hauptverfasser: Anna Ilyina, Mr. Shekhar Aiyar, Andreas Jobst, Dmitriy Kovtun, Mr. Wolfgang Bergthaler, Ms. Yan Liu, Jose M Garrido, Shekhar Aiyar, Mr. Kenneth Kang, Mr. Dermot Monaghan, Wolfgang Bergthaler, Jose Garrido, Kenneth Kang, Yan Liu, Dermot Monagha
Format: Buch
Sprache:eng
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Zusammenfassung:Europe's banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans. A three pillared strategy is advocated to remedy the situation, comprising: (i) tightened supervisory policies, (ii) insolvency reforms, and (iii) the development of distressed debt markets.