ECB Banking Supervision, (2017), “Guidance to banks on non-performing loans”, ECB, March
A number of banks in Member States across the Euro area are currently experiencing high levels of non-performing loans (NPLs). There is broad consensus on the view that high NPL levels ultimately have a negative impact on bank lending to the economy1 , as a result of the balance sheet, profitability, and capital constraints faced by banks with high NPL levels.
Relevant Posts
- Onado, Marco, (2017), “In search of a European solution for banks’ non-performing loans”, VoxEu, 21 February
- Constancio, Vitor, (2017), “Resolving Europe’s NPL burden: challenges and benefits”, Bruegel, 3 February