A Strategy for Resolving Europe's Problem Loans
Business & Finance, Economics, Money & Monetary Policy, Finance & Investing, Finance
| Author: | Shekhar Aiyar, Jose Garrido, Anna Ilyina, Andreas Jobst, Kenneth Kang, Dmitriy Kovtun, Yan Liu, Dermot Monaghan | ISBN: | 9781513511658 |
| Publisher: | INTERNATIONAL MONETARY FUND | Publication: | September 24, 2015 |
| Imprint: | Language: | English |
| Author: | Shekhar Aiyar, Jose Garrido, Anna Ilyina, Andreas Jobst, Kenneth Kang, Dmitriy Kovtun, Yan Liu, Dermot Monaghan |
| ISBN: | 9781513511658 |
| Publisher: | INTERNATIONAL MONETARY FUND |
| Publication: | September 24, 2015 |
| Imprint: | |
| Language: | English |
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.
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.
