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...

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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
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245 0 0 |a A Strategy for Resolving Europe's Problem Loans  |c Shekhar Aiyar, Wolfgang Bergthaler, Jose Garrido, Anna Ilyina, Andreas Jobst, Kenneth Kang, Dmitriy Kovtun, Yan Liu, Dermot Monaghan, Marina Moretti 
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653 |a Depository Institutions 
653 |a Distressed assets 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Financial sector policy and analysis 
653 |a Financial institutions 
653 |a Bankruptcy 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Debt Management 
653 |a Micro Finance Institutions 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Debt 
653 |a Asset and liability management 
653 |a Mortgages 
653 |a Nonperforming loans 
653 |a Debts, External 
653 |a Sovereign Debt 
653 |a Solvency 
653 |a Loans 
653 |a Banks and Banking 
653 |a Liquidation 
653 |a Debt restructuring 
653 |a Banking 
653 |a Financial Risk Management 
653 |a Finance: General 
700 1 |a Bergthaler, Wolfgang 
700 1 |a Garrido, Jose 
700 1 |a Ilyina, Anna 
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520 |a 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