Results of the report “The NPL phenomenon between pandemic crisis and emergency law: economic and legal analysis”
Presented at the National Central Library in Rome, the results of the research conducted by Eurispes entitled: “The NPL phenomenon between pandemic crisis and emergency law: economic and legal analysis”. The aim of the study is to analyse the evolution of impaired loans for Italian banks over the last decade and their impact on the macroeconomic framework.
The phenomenon of NPLs and UTPs in Italy began to assume vast proportions as of the financial crisis of 2007-09. It peaked in the second half of 2015. Since then, partly due to the push of European supervisory regulations, the Italian banking system has reduced its exposure to non-performing loans by selling them to third parties. Currently, this incidence is close to the 5% required by European regulations. The reduction in the incidence of NPEs (not performing exposures) has generally entailed a cost, represented by the lower realisation on the loan compared to what could have been obtained through legal action. The effects have been to lighten bank balance sheets, but at the same time to increase the difficulties of failing companies in dealing with banks or assignees. This phenomenon is likely to come back, so studying the trend of NPEs could help to better manage a phase that could happen again.
The research therefore starts from an analysis of the volume, structure and trend of NPEs in the Italian scenario, with a particular focus on their management methods and effects on debtor companies. Such a reconnaissance was seen as functional in relation to the identification of best practices and the development of the most suitable tools to manage the phenomenon in the coming years.
The full report can be viewed, after registering on our website, at the following link
The summary of the report can instead be downloaded by clicking here
