11 Mar 2021

Non-performing loans – new risks and policies?

What factors drive the performance of national asset management companies?

Emilios Avgouleas / Rym Ayadi / Marco Bodellini / Barbara Casu / Willem Pieter De Groen / Giovanni Ferri

0
Download Publication

3400 Downloads

In the past decade, asset management companies (AMCs) have been an effective tool for relieving banks of large portfolios of non-performing loans (NPLs). Managed over time, AMCs can reduce the financial burden on the overall system. This paper is based on the existing literature and EU experiences of national AMCs created in the aftermath of the global financial crisis. It discusses the advantages and disadvantages of using AMCs, and considers the key elements in their design.

This material was originally published in a paper provided at the request of the Committee on Economic and Monetary Affairs of the European Parliament and commissioned by the Directorate-General for Internal Policies of the Union and supervised by its Economic Governance Support Unit (EGOV). The opinions expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Parliament. The original paper is available on the European Parliament’s webpage.

Related Publications

Browse through the list of related publications.

Enhancing capital market financing for Europe’s growth companies

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Healthcare and Pharmaceuticals

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Basel III Finalisation

The impact on EU banks and the real economy across scenarios