Completing NPL reduction in Europe
Download PDF: Discussion Paper 6
- Loukas Kaskarelis (European Stability Mechanism)
- Dóra Siklós (European Stability Mechanism)
This discussion paper analyses the relevance of the non-performing loan (NPL) problem for European banks. We provide an overview of the measures implemented by select euro area member states following the financial crisis. The paper also aims to highlight European solutions to the problem, which require additional measures introduced at supranational level. As such, we summarise the different workstreams that have recently started in the European Union. We also suggest a few policy responses for further consideration, which could provide some alternative or additional incentives for banks to reduce or keep their NPLs at a sustainably low level.
Disclaimer: The views expressed in this discussion paper are those of the authors and do not necessarily represent those of the ESM or ESM policy. No responsibility or liability is accepted by the ESM in relation to the accuracy or completeness of the information, including any data sets, presented in this paper.