With an estimated €1000bn of non-performing loans (NPLs) on the balance sheets of European banks, resolving NPLs should be one of the banks’ highest priorities.
NPLs have had a corrosive effect on Europe’s banking sector since the financial crash, reducing profitability, consuming capital, tying up resources and affecting the cost and supply of credit. Indeed, the European Commission’s latest quarterly eurozone report reveals that they continue to be a material brake on economic growth.
