Non-performing loans in european banks. Management and Resolution
pp. 150, 1a edizione 2019 (Codice editore 365.1211)
This book analyses non-performing loan (NPL) issues in European banks. Its aim is to examine the origins of NPLs in the EU, as well as their implications for banks, outline the EU measures and actions undertaken to address NPLs, and discuss the different solutions to handle NPLs.
Presentazione del volume
This book analyses non-performing loan (NPL) issues in European banks.
Large NPL stock is a primary challenge to European banks and to the European Union (EU) as a whole, given that high NPL levels have several implications for banks, which can be transmitted to the real economy.
The objective of this book is to examine the origins of NPLs in the EU, as well as their implications for banks, outline the EU measures and actions undertaken to address NPLs, and discuss the different solutions to handle NPLs, namely NPL management and resolution strategies. To this end, the first section provides an overview on the NPL issues in the EU context, outlining the origins of the problem, its implications for banks and the problem's magnitude. The second section focusses on the EU institutions' approaches to NPLs, by discussing all the initiatives and measures that have been undertaken by the EU authorities in response to the NPL problem. The third section examines EU banks' main tools to address NPLs, highlighting their key features and implications in terms of advantages and limits, as well as the interventions by EU authorities and EU member states in ensuring favourable conditions for banks to dispose of NPLs. The fourth section provides an overview of and discusses the NPL management and resolution strategies adopted by a sample of EU significant banks. The final section provides a concluding discussion of the study emphasising how, in addition to the burden on a bank's profitability and capital, the management of high NPL stock diverts management attention and other resources away from a bank's main activities. At the same time, it points out the need for further efforts to reduce high NPL stock on banks' balance sheets, in order to enable EU banks to re-focus on their core business, lending to the economy.
Pierluigi Martino, Ph.D., is Research Fellow at the Department of Economics and Management of the University of Pisa.
Non-performing loans in European banks
(Financial crises and non-performing loans; Determinants of NPLs: A literature review; The implications of NPLs; NPLs in the EU: Overview and data; Conclusions)
Non-performing loans: The regulatory approach and the supervisory approach in the European Union
(Introduction; The European Banking Union: General remarks and NPL issues; Europe-level NPL regulation initiatives; The recent disposal on NPL regulation; The regulation of NPLs in Italy; The regulation of NPLs: Next perspectives; Conclusions)
The management and resolution of non-performing loans
(Introduction; The maintenance of NPLs on banks' balance sheets; Asset Protection Schemes; Sale of NPLs; Securitisation; Asset management companies or bad banks; Conclusions)
A comparison of the non-performing loan resolution strategies of significant institutions
(Introduction; The case of Portugal; The case of Spain; The case of Ireland; The case of Italy; Conclusions)
Tutti i campi devono essere compilati.