Macroprudential approaches to non-performing loans

ECB
By January 29, 2019 14:36

Macroprudential approaches to non-performing loans

This report presents an analysis carried out by the ESRB in response to a Council of the European Union request to develop “macroprudential approaches to prevent the emergence of system-wide NPL problems, while taking due consideration of procyclical effects of measures addressing NPLs’ stocks and potential effects on financial stability”. Relying on the experience and expertise of ESRB members, especially those from Member States in which system-wide increases in non-performing loans (NPLs) were observed in the aftermath of the recent crisis, the report begins by identifying the main triggers, vulnerabilities and amplifiers that can drive system-wide increases in NPLs. With these drivers in mind, the report then focuses on the role that macroprudential policy can play in preventing system-wide increases in NPLs and/or in increasing banks’ resilience in the face of such increases

ECB
By January 29, 2019 14:36

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