This site is for archive purposes. Please visit www.eliamep.gr for latest updates
Go to Top

How to tackle Europe’s non-performing loan problem

Aiyar, Shekhar, Ilyina, Anna, Jobst, Andreas, (2015), “How to tackle Europe’s non-performing loan problem”, Voxeu, 5 November.

European banks are struggling with high levels of non-performing loans. This column explores the channels through which persistently high non-performing loans hold down credit growth and economic activity. A survey of EU authorities and banks reveals that the loans are not written-off for a variety of deep-seated reasons, including legal and tax code issues. An agenda is proposed comprising tightened bank supervision, structural bankruptcy reforms, and the development of markets for distressed assets.

Relevant Posts