A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Non-performing loans and the cost of deleveraging: The Italian experience
The massive stock of Non-Performing Loans (NPLs) in Europe has forced regulatory and supervisory authorities to promote debate on their management and timely disposal. Simultaneously, the transition to IFRS 9 created the need for higher provisioning and for weighting sale scenarios in the assessment of NPLs. This study, using a scenario analysis based on the Italian experience of the NPL resolution process, focuses on the cost of deleveraging by comparing the alternative strategies of direct sale and securitization. The study highlights the impact of the assumptions derived from the portfolio assessment and the additional cost arising from the uncertainties surrounding the appropriate recovery procedure. It demonstrates that securitization minimises this cost, while estimating the benefit derived from the support of State-backed guarantees. These findings provide useful insights for policy makers, suggesting the promotion of further measures that aim to reduce the transfer of value from banks to third parties.
Non-performing loans and the cost of deleveraging: The Italian experience
The massive stock of Non-Performing Loans (NPLs) in Europe has forced regulatory and supervisory authorities to promote debate on their management and timely disposal. Simultaneously, the transition to IFRS 9 created the need for higher provisioning and for weighting sale scenarios in the assessment of NPLs. This study, using a scenario analysis based on the Italian experience of the NPL resolution process, focuses on the cost of deleveraging by comparing the alternative strategies of direct sale and securitization. The study highlights the impact of the assumptions derived from the portfolio assessment and the additional cost arising from the uncertainties surrounding the appropriate recovery procedure. It demonstrates that securitization minimises this cost, while estimating the benefit derived from the support of State-backed guarantees. These findings provide useful insights for policy makers, suggesting the promotion of further measures that aim to reduce the transfer of value from banks to third parties.
Non-performing loans and the cost of deleveraging: The Italian experience
Bolognesi E. (author) / Compagno C. (author) / Miani S. (author) / Tasca R. (author) / Bolognesi E. / Compagno C. / Miani S. / Tasca R.
2020-01-01
Article (Journal)
Electronic Resource
English
DDC:
710
Spatial dependence in the non-performing loans of small Italian cooperative banks
| Taylor & Francis Verlag | 2023
Keeping Faith in Real Estate during Deleveraging
| British Library Online Contents | 2009
Neue umsatzsteuerliche Entwicklungen bei Non-Performing Loans (NPL)
| British Library Online Contents | 2007
Sustainable Visual Analysis for Bank Non-Performing Loans and Government Debt Distress
| DOAJ | 2019