Italy Financial Sector Assessment Program-Technical Note-Tackling Non-Performing Assets

Banks’ asset quality has substantially improved in recent years but remains well below European peers. Non-performing loans (NPLs) fell from 16½ percent in 2015 to about 8.1 percent at end-June 2019, achieved mainly through €145 billion of private NPL sales. This is a substantial reduction by any st...

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Bibliographic Details
Corporate Author: International Monetary Fund Monetary and Capital Markets Department
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2020
Series:IMF Staff Country Reports
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 35 pages 
651 4 |a Italy 
653 |a Economic & financial crises & disasters 
653 |a Depository Institutions 
653 |a Distressed assets 
653 |a Banks 
653 |a Finance 
653 |a Financial crises 
653 |a Industries: Financial Services 
653 |a Banks and banking 
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 Micro Finance Institutions 
653 |a Debt 
653 |a Mortgages 
653 |a Nonperforming loans 
653 |a Corporate Finance 
653 |a Collateral 
653 |a Solvency 
653 |a Loans 
653 |a Banks and Banking 
653 |a Liquidation 
653 |a Banking 
653 |a Corporate insolvency 
653 |a Finance: General 
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520 |a Banks’ asset quality has substantially improved in recent years but remains well below European peers. Non-performing loans (NPLs) fell from 16½ percent in 2015 to about 8.1 percent at end-June 2019, achieved mainly through €145 billion of private NPL sales. This is a substantial reduction by any standard, though NPLs remain well above the 3.0 percent average of the main European Union (EU) banks as of June 2019. New NPL formation has fallen to pre-crisis levels. Provisioning coverage was 52.5 percent as of June 2019, placing Italy 7.6 percentage points above the average of the main EU banks