A Strategy for Resolving Europe's Problem Loans [electronic resource]
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TextSeries: Staff Discussion NotesPublication details: Washington, D.C. : International Monetary Fund, 2015Description: 1 online resource (79 p.)ISBN: 1513591274 :ISSN: 2221-030XSubject(s): Bank Resolution | Banks | Debt Restructuring | Non-Performing Loans | EuropeAdditional physical formats: Print Version:: A Strategy for Resolving Europe's Problem LoansOnline resources: IMF e-Library | IMF Book Store Abstract: 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.
Description based on print version record.
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