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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Bibliographic Details
Main Author: Aiyar, Shekhar
Other Authors: Bergthaler, Wolfgang, Garrido, Jose, Ilyina, Anna
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:Staff Discussion Notes; Staff Discussion Notes ; No. 2015/019
Online Access:Full text available on IMF
Description
Summary: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.
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Physical Description:1 online resource (79 pages)
Format:Mode of access: Internet
ISSN:2617-6750
Access:Electronic access restricted to authorized BRAC University faculty, staff and students