Segnalazione dalla BCE

... the latest issue (No. 71) of the ECB Research Bulletin, entitled “COVID-19 and non-performing loans: lessons from past crises”.

Anil Ari, Sophia Chen (International Monetary Fund) and Lev Ratnovski (European Central Bank) use a new database covering non-performing loans (NPLs) in 88 banking crises since 1990 to show what can be learned from past crises for non-performing loan resolution after COVID-19.

Compared with the 2008 crisis, some factors are conducive to NPL resolution this time: banks have higher capital, the forward-looking IFRS 9 accounting standards can help NPL recognition, and the COVID-19 crisis was not preceded by a credit boom. However, other factors could make NPL resolution more challenging: government debt is substantially higher, banks are less profitable, and corporate balance sheets are often weak.

The ECB Research Bulletin features a selection of recent work on policy-relevant topics by ECB economists. Published on a monthly basis, the articles in the Research Bulletin are intended for a general audience. The views expressed in each article are those of the authors and do not necessarily represent the views of the European Central Bank and the Eurosystem.