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A Strategy for Developing a Market for Nonperforming Loans in Italy

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  • Nadège Jassaud
  • Mr. Kenneth H Kang

Abstract

Addressing the buildup of nonperforming loans (NPLs) in Italy since the global financial crisis will remain a challenge for some time and be important for supporting a sustained, robust economic recovery. The buildup reflects both the prolonged recession as well as structural factors that have held back NPL write-offs by banks. The paper discusses the impediments to NPL resolution in Italy and a strategy for fostering a market for restructuring distressed assets that could support corporate and financial restructuring.

Suggested Citation

  • Nadège Jassaud & Mr. Kenneth H Kang, 2015. "A Strategy for Developing a Market for Nonperforming Loans in Italy," IMF Working Papers 2015/024, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/024
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    References listed on IDEAS

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    Cited by:

    1. Viral V Acharya & Tim Eisert & Christian Eufinger & Christian Hirsch, 2019. "Whatever It Takes: The Real Effects of Unconventional Monetary Policy," The Review of Financial Studies, Society for Financial Studies, vol. 32(9), pages 3366-3411.
    2. Greta Falavigna & Roberto Ippoliti, 2022. "Financial constraints, investments, and environmental strategies: An empirical analysis of judicial barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2002-2018, July.
    3. Paola Bongini & Maria Luisa Di Battista & Laura Nieri, 2016. "La gestione dei crediti deteriorati: un percorso a ostacoli tra soluzioni individuali e soluzioni di sistema," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2016(3), pages 439-465.
    4. Emrah Arbak, 2017. "Identifying the provisioning policies of Belgian banks," Working Paper Research 326, National Bank of Belgium.
    5. Us, Vuslat, 2017. "Dynamics of non-performing loans in the Turkish banking sector by an ownership breakdown: The impact of the global crisis," Finance Research Letters, Elsevier, vol. 20(C), pages 109-117.
    6. Jakub Gren & David Howarth & Lucia Quaglia, 2015. "Supranational Banking Supervision in Europe: The Construction of a Credible Watchdog," Journal of Common Market Studies, Wiley Blackwell, vol. 53, pages 181-199, September.
    7. David Bholat & Rosa M. Lastra & Sheri M. Markose & Andrea Miglionico & Kallol Sen, 2018. "Non-performing loans at the dawn of IFRS 9: regulatory and accounting treatment of asset quality," Journal of Banking Regulation, Palgrave Macmillan, vol. 19(1), pages 33-54, January.
    8. Emrah Arbak, 2017. "Identifying the provisioning policies of Belgian banks," Working Paper Research 326, National Bank of Belgium.
    9. Ahmed Nahar Al Hussaini, 2019. "Credit Risk and Financial Stability Under Controlling Effect of Financial Sector Development: A Study from Banking Sector of GCC Members," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 122-138, January.
    10. Jose M Garrido & Emanuel Kopp & Miss Anke Weber, 2016. "Cleaning-up Bank Balance Sheets: Economic, Legal, and Supervisory Measures for Italy," IMF Working Papers 2016/135, International Monetary Fund.
    11. Kurter, Zeynep O., 2022. "How macroeconomic conditions affect systemic risk in the short and long-run?," The Warwick Economics Research Paper Series (TWERPS) 1407, University of Warwick, Department of Economics.
    12. Edoardo Gaffeo & Ronny Mazzocchi, 2019. "“The price is right”: using auction theory to enhance competition in the NPL market," Journal of Banking Regulation, Palgrave Macmillan, vol. 20(1), pages 104-112, March.
    13. Elisabetta Montanaro & Mario Tonveronachi, 2017. "Vulnerabilita' del sistema bancario italiano. Diagnosi e rimedi (Dealing with the vulnerability of the Italian banking system)," Moneta e Credito, Economia civile, vol. 70(280), pages 299-368.
    14. Brunella Bruno & Immacolata Marino, 2017. "Bad loans and resource allocation in crisis years: Evidence from European banks," BAFFI CAREFIN Working Papers 1752, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    15. Bolognesi, Enrica & Stucchi, Patrizia & Miani, Stefano, 2020. "Are NPL-backed securities an investment opportunity?," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 327-339.
    16. Vincenzo D'Apice & Franco Fiordelisi & Giovanni W. Puopolo, 2020. "Judicial Efficiency and Lending Quality," CSEF Working Papers 588, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    17. Matthes, Jürgen & Iara, Anna, 2016. "On the future of EMU: Targeted reforms instead of more fiscal integration," IW-Reports 17/2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    18. International Monetary Fund, 2015. "Italy: Selected Issues," IMF Staff Country Reports 2015/167, International Monetary Fund.

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