A Strategy for Resolving Europe's Problem Loans

Author/Editor:

Shekhar Aiyar ; Wolfgang Bergthaler ; Jose M Garrido ; Anna Ilyina ; Andreas Jobst ; Kenneth H Kang ; Dmitriy Kovtun ; Yan Liu ; Dermot Monaghan ; Marina Moretti

Publication Date:

September 24, 2015

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Europe’s banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans. A three pillared strategy is advocated to remedy the situation, comprising: (i) tightened supervisory policies, (ii) insolvency reforms, and (iii) the development of distressed debt markets.

Series:

Staff Discussion Notes No. 15/19

Subject:

Notes:

See Also Technical Background Note

English

Publication Date:

September 24, 2015

ISBN/ISSN:

9781513591278/

Stock No:

SDNEA2015019

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

79

Please address any questions about this title to publications@imf.org