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 addressin...

Full description

Bibliographic Details
Main Author: Aiyar, Shekhar
Other Authors: Bergthaler, Wolfgang, Garrido, Jose, Ilyina, Anna
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:Staff Discussion Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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
Physical Description:79 pages
ISBN:9781513591278