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Contribution Details

Type Other Publication
Scope Discipline-based scholarship
Title Non-performing Loans - New risks and policies?
Other Titles NPL resolution after COVID-19: Main differences to previous crises
Organization Unit
Authors
  • Johannes Kasinger
  • Jan Pieter Krahnen
  • Steven Ongena
  • Loriana Pelizzon
  • Maik Schmeling
  • Mark Wahrenburg
Language
  • English
How Published European Parliament Think Tank, March 17
Date 2021
Abstract Text This paper discusses policy implications of a potential surge in NPLs due to COVID-19. The study provides an empirical assessment of potential scenarios and draws lessons from previous crises for effective NPL treatment. The paper highlights the importance of early and realistic assessment of loan losses to avoid adverse incentives for banks. Secondary loan markets would help in this process and further facilitate bank resolution as laid down in the BRRD, which should be uphold even in extreme scenarios.) at the request of the Committee on Economic and Monetary Affairs (ECON).
Free access at Official URL
Official URL https://www.europarl.europa.eu/RegData/etudes/STUD/2021/651387/IPOL_STU(2021)651387_EN.pdf
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