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Non-performing loans in Italy and selected European countries

Berger, Bennet, (2015), “Non-performing loans in Italy and selected European countries”, Bruegel publications, 18 December

Fears of a banking crisis in Italy are surfacing after four small Italian banks were rescued in November.The rescue plan involves transferring the banks’ bad loans to a single bad bank. Non-performing loans (NPLs), loans in default or close to being in default, continue to raise doubts about the health of the banking sector in Italy and several other European countries. NPLs are shown to have negative implications for growth (Aiyar et al. 2015).

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