Cleaning-up Bank Balance Sheets : Economic, Legal, and Supervisory Measures for Italy
Electronic Access:
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Summary:
To stabilize and bring down nonperforming loans (NPLs) in the Italian banking system, the Italian authorities have been implementing a number of reforms, aimed among others at speeding up insolvency and enforcement proceedings, strengthening bank corporate governance, cleaning up balance sheets, and facilitating bank consolidation. This paper examines the Italian banking system’s NPL problem, which ties up capital, weighing on bank profitability and authorities’ economic reforms. It argues for a comprehensive approach, encompassing economic, supervisory, and legal measures. The authorities’ reforms are important steps toward this end. The paper describes measures that could further support their actions.
Series:
Working Paper No. 16/135
Subject:
Balance sheets Bank reforms Bank supervision Banking sector Banks Corporate governance Italy Non-performing loans
English
Publication Date:
July 11, 2016
ISBN/ISSN:
9781498357036/1018-5941
Stock No:
WPIEA2016135
Format:
Paper
Pages:
33
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