A Strategy for Resolving Europe's Problem Loans

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Europe’s banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans. A three pillared strategy is advocated to remedy the situation, comprising: (i) tightened supervisory policies, (ii) insolvency reforms, and (iii) the development of distressed debt markets.

作者简介

José M. Garrido holds a Ph.D. in information technology from George Mason Universitys School of Information Technology and Engineering. Garrido is an assistant professor of computer science at Davis and Elkins College in Elkins, WV.

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