Overstating Moral Hazard: Lessons from Two Decades of Banking Crises Read more about Overstating Moral Hazard: Lessons from Two Decades of Banking Crises This paper surveyed approaches to the resolution of nonperforming loans in the context of major banking crises over the past two decades.
The Resolution of NPLs in the Euro Area Read more about The Resolution of NPLs in the Euro Area The paper outlined the extent and examined the factors underlying the NPL problem in the euro area. Over a decade after the global financial crisis, a large stock of nonperforming loans continues to be an important concern in the euro area, with 114 euro area banking institutions holding 759 billion euros of gross NPLs corresponding to an NPL ratio of 5.2% in September 2017.
Maciej Grodzicki Keywords topical banking issues nonperforming loans Read more about Maciej Grodzicki Maciej Grodzicki is an Adviser at the Systemic Risk and Financial Institutions Division of the European Central Bank. He works extensively on topical banking issues in the euro area banking sector, and on calibration of capital buffers for systemically important banks. He has been actively contributing to the European debate on resolution of non-performing bank assets and its impact on bank solvency and economic conditions, including with several ECB publications.
Assessing the Effectiveness of Banking Sector Nonperforming Loan Resolution Policies and Measures Read more about Assessing the Effectiveness of Banking Sector Nonperforming Loan Resolution Policies and Measures Previous financial crises have demonstrated the long-lasting negative impact NPLs can have on financial stability and the economy, as the effects of elevated NPL levels persist beyond crisis periods. Consequently, the identification of policy options to effectively manage and respond to a buildup in NPLs has gained attention in recent years. Employing a dataset comprising macroeconomic and financial variables of 76 economies from 1996-2016, the authors assessed the effectiveness of several NPL resolution measures.
Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms Read more about Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms The paper proposed frameworks and strategies for developing NPL markets at national and regional levels in the Asia Pacific region, with a view to strengthening financial resilience and promoting financial development. The significance of a large and sustained buildup of NPLs was underlined as an increase in distressed assets can raise the possibility of a banking crisis and subsequently evolve into a nation-wide financial crisis.